Form 4: Eastman Chemical Co Director Donald W. Slager Reports Acquisition of Phantom Stock Units

Director Donald W. Slager reports acquisition of 61 Phantom Stock Units of Eastman Chemical Co through a director's deferred compensation plan.

Summary

• Donald W. Slager, a director at Eastman Chemical Co, reported a transaction on July 9, 2024.
• He acquired 61 Phantom Stock Units under the Directors' Deferred Compensation Plan.
• These units are payable in cash after termination of service as a director and each unit has a value equal to one share of Eastman Chemical Co common stock.
• The acquisition was due to the automatic deferral of a portion of the director's annual retainer fees into the director's stock account of the Directors' Deferred Compensation Plan.
• Following the transaction, Slager directly owns 61 Phantom Stock Units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The transaction reflects standard director compensation practices and aligns director interests with the company's performance.

Positives

• The acquisition of Phantom Stock Units aligns the director's interests with the long-term performance of the company.
• The Directors' Deferred Compensation Plan allows directors to defer compensation into stock units, potentially increasing their stake in the company.

Future Outlook

The Phantom Stock Units will be payable in cash after termination of service as a director.

Industry Context

Director compensation packages often include deferred compensation plans to align the interests of directors with the long-term performance of the company. Phantom stock units are a common component of these plans.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice among publicly traded companies.
• Companies like Dow and DuPont also utilize similar deferred compensation plans for their directors, often including stock-based compensation or phantom stock units.
• The specific terms of these plans, such as vesting schedules and payout methods, can vary significantly between companies.

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