Item 8.01 Other Events.
On October 19, 2009, the Executive Compensation Committee of the Board of Directors of Sonoco Products Company (the "Company") adopted the following policy prohibiting tax gross-ups in future executive compensation programs:
It is the policy of the Compensation Committee not to use tax gross-ups as a part of the compensation or benefits provided to executives of the Company; provided, however, that this policy shall not apply (i) to the tax gross-ups currently provided to eight officers pursuant to existing agreements to pay premiums on frozen executive life insurance policies that replaced the officers' former split dollar life insurance policies, nor (ii) to gross-ups which cover certain expenses under the Company's salaried employee relocation policy, which includes executive officers.

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