Form 4: Eastman Chemical Co. Director Acquires Phantom Stock Units

Director Humberto P. Alfonso acquired 1,252 phantom stock units under the Directors' Deferred Compensation Plan, deferring a restricted stock award.

Summary

• Director Humberto P. Alfonso acquired 1,252 phantom stock units on May 2, 2024, under Eastman Chemical Co.'s Directors' Deferred Compensation Plan.
• These units are equivalent to the market value of one share of Eastman Chemical Co. common stock.
• The acquisition was a deferral of the value of an annual non-employee director restricted stock award.
• The phantom stock units will vest on May 2, 2025, and are payable only in cash.
• Following the transaction, Alfonso beneficially owns 44,835 derivative securities, which includes 39 units credited as hypothetical reinvestment of dividend equivalents since April 5, 2024.
• The price of the phantom stock units is $95.92.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard director compensation practices and aligns director interests with shareholders. There are no indications of negative performance or concerns.

Positives

• The acquisition of phantom stock units demonstrates the director's continued investment in the company's future.
• Deferral of compensation into phantom stock units aligns the director's interests with those of the shareholders.

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

Directors' deferred compensation plans are common in publicly traded companies to align the interests of directors with those of shareholders. These plans often involve the issuance of phantom stock units or restricted stock awards.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice among publicly traded companies, including Eastman Chemical Co.
• Companies like Dow and DuPont also utilize similar compensation structures to align director interests with shareholder value.
• The vesting period of one year for these phantom stock units is relatively standard within the industry.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially leading to better corporate governance and decision-making.
• The future cash payment for the vested units will impact the company's cash flow.

Key Dates