Form 4: Eastman Chemical Co Director Acquires Phantom Stock Units

Director Brett D. Begemann acquired 1,575 phantom stock units of Eastman Chemical Co on May 1, 2025, under the Directors' Deferred Compensation Plan.

Summary

• On May 1, 2025, Brett D. Begemann, a director of Eastman Chemical Co, acquired 1,575 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 1, 2026, and are payable only in cash.
• The acquisition price was $76.22 per unit.
• Begemann's total holdings following the transaction amount to 52,806 phantom stock units, including 16 units credited as hypothetical reinvestment of dividend equivalents since April 7, 2025.

Sentiment

Score: 7

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

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 1, 2026, and are payable only in cash, indicating a future cash outflow for the company.

Industry Context

Director compensation through phantom stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Companies like Dow and BASF also utilize deferred compensation plans for their directors, often including stock-based awards or phantom stock units.
• The vesting schedules and payout terms of these plans vary, but the general purpose is to incentivize long-term value creation.

Stakeholder Impact

• Shareholders: Aligns director's interests with company performance.
• Employees: No direct impact.
• Company: Future cash outflow upon vesting of phantom stock units.

Key Dates

Keywords

Phantom Stock Units, Director Compensation, Eastman Chemical, Beneficial Ownership, Form 4, EMN, Securities