Form 4: Eastman Chemical Co Director Acquires Phantom Stock Units

Director Brett D. Begemann 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, Brett D. Begemann, a director of Eastman Chemical Co, acquired 1,252 phantom stock units.
• These units were credited under the Directors' Deferred Compensation Plan.
• The phantom stock units have a value equal to the market value of one share of Eastman Chemical Co common stock.
• The price of the phantom stock units was $95.92.
• These units will vest on May 2, 2025, and are payable only in cash.
• Begemann's holdings include 41 units credited since April 5, 2024, as hypothetical reinvestment of dividend equivalents.
• Following the transaction, Begemann beneficially owns 46,550 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and aligns director interests with shareholder value. There are no indications of negative events or concerns.

Future Outlook

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

Industry Context

This filing reflects standard executive compensation practices, where phantom stock units are used to align director interests with shareholder value. These units provide directors with a stake in the company's performance without issuing actual shares until vesting.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units (RSUs).
• Phantom stock units are similar to RSUs but are settled in cash upon vesting.
• Companies like Dow and DuPont also utilize similar compensation strategies to incentivize their directors.
• The vesting period of one year is relatively standard for director equity awards.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, as the value of the units is tied to the company's stock performance.
• The cash settlement upon vesting could impact the company's cash flow in the future.

Key Dates