v3.26.1
Share-Based Compensation
3 Months Ended
Mar. 21, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Share-Based Compensation
Starting with awards granted in 2026, RSUs and stock options will primarily vest ratably over three years and amortized to expense on a straight-line basis. Additionally, certain executive officers and other senior executives who were previously granted 66% PSUs and 34% long-term cash were granted 60% PSUs and 40% RSUs in 2026. For PSUs granted in 2026, the final payout will be determined over a three-year period based on achievement of specified pre-established financial performance metrics, with PepsiCo’s total shareholder return relative to a specific set of peer companies acting as a multiplier. The Monte Carlo valuation model is used to determine the grant date fair value of the award, reflective of the total shareholder return market condition. Share-based compensation expense is adjusted for changes in the expected achievement of pre-established financial performance metrics throughout the three-year performance period.
The following table summarizes our total share-based compensation expense, which is primarily recorded in selling, general and administrative expenses:
12 Weeks Ended
3/21/20263/22/2025
Share-based compensation expense – equity awards$93 $77 
Share-based compensation expense – liability awards2 
Restructuring charges1 (1)
Total$96 $80 
The following table summarizes share-based awards granted under the terms of the PepsiCo, Inc. Long-Term Incentive Plan:
12 Weeks Ended
3/21/20263/22/2025
Granted(a)
Weighted-Average Grant Price
Granted(a)
Weighted-Average Grant Price
Stock options0.9 $169.25 1.4 $153.75 
RSUs and PSUs2.4 $169.25 2.1 $153.71 
(a)In millions. All grant activity is disclosed at target.
We granted long-term cash awards to certain executive officers and other senior executives with an aggregate target value of $22 million during the 12 weeks ended March 22, 2025.
Our weighted-average Black-Scholes fair value assumptions are as follows: 
 12 Weeks Ended
 3/21/20263/22/2025
Expected life7 years7 years
Risk-free interest rate3.7 %4.1 %
Expected volatility16 %16 %
Expected dividend yield3.5 %3.4 %