Form 4: Eastman Chemical Co Director Acquires Phantom Stock Units

Director Kim Ann Mink acquired 1,252 phantom stock units of Eastman Chemical Co on May 2, 2024, under the Directors' Deferred Compensation Plan.

Summary

• On May 2, 2024, Kim Ann Mink, a director of Eastman Chemical Co, acquired 1,252 phantom stock units.
• These units were credited under the Directors' Deferred Compensation Plan.
• Each unit has a value equal to the market value of one share of Eastman Chemical Co common stock.
• The phantom stock units will vest on May 2, 2025, and are payable only in cash.
• The acquisition was a deferral of the value of an annual non-employee director restricted stock award.
• Following the transaction, Mink beneficially owns 11,490 derivative securities, which includes 8 units credited since April 5, 2024, as hypothetical reinvestment of dividend equivalents.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices and aligns interests with shareholders.

Positives

• The acquisition of phantom stock units aligns the director's interests with the company's performance.
• The Directors' Deferred Compensation Plan allows for deferral of compensation, potentially offering tax advantages.

Future Outlook

The phantom stock units will vest on May 2, 2025, and are payable only in cash, representing a future cash obligation for the company.

Industry Context

Director compensation in the form of stock and phantom stock units is a common practice in publicly traded companies to align management's interests with those of shareholders.

Comparison to Industry Standards

• Companies like Dow and BASF also utilize deferred compensation plans for their directors.
• The amount of phantom stock units granted is within the typical range for director compensation at companies of similar size and market capitalization.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.
• The future cash payment for the vested units represents a future obligation for the company.

Key Dates