Form 4: Eastman Chemical Co Director Alfonso Acquires Phantom Stock Units
SEC Form 4 Filing
Director Humberto P. Alfonso acquired 1,575 phantom stock units of Eastman Chemical Co. under the Directors' Deferred Compensation Plan on May 1, 2025.
Summary
- On May 1, 2025, Humberto P. Alfonso, a director of Eastman Chemical Co., acquired 1,575 phantom stock units under the Directors' Deferred Compensation Plan.
- These units are unvested and will vest on May 1, 2026, and are payable only in cash.
- The acquisition is a deferral at the director's election of the value of an annual non-employee director restricted stock award.
- The price of the phantom stock units was $76.22.
- Following the reported transaction, Alfonso beneficially owns 50,781 derivative securities, which includes 16 units credited since April 7, 2025, as hypothetical reinvestment of dividend equivalents.
Sentiment
Score: 7
Explanation: The sentiment is neutral to positive as it reflects standard director compensation practices and aligns director interests with company performance.
Positives
- The acquisition of phantom stock units aligns the director's interests with the company's performance.
- The deferred compensation plan allows for tax-efficient accumulation of wealth for the director.
Future Outlook
The phantom stock units will vest on May 1, 2026, and will be payable in cash at that time.
Industry Context
Directors often receive stock-based compensation to align their interests with shareholders. Phantom stock units are a common form of deferred compensation.
Comparison to Industry Standards
- Director compensation packages vary widely across the chemical industry.
- Companies like Dow and BASF also utilize stock-based compensation for their directors.
- The specific terms of Eastman Chemical's Directors' Deferred Compensation Plan would need to be compared to those of its peers to assess its competitiveness.
Stakeholder Impact
- The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.
Key Dates
| Date | Description |
|---|---|
| April 7, 2025 | Date from which 16 units were credited as hypothetical reinvestment of dividend equivalents. |
| May 1, 2025 | Date of transaction: acquisition of 1,575 phantom stock units. |
| May 1, 2026 | Vesting date of the phantom stock units. |
| May 5, 2025 | Date of signature of the Form 4 filing. |
Keywords
phantom stock units, director compensation, Eastman Chemical, Form 4, insider trading, EMN, Alfonso, deferred compensation
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