Form 4: Eastman Chemical Co Director Edward L. Doheny II Reports Acquisition of Phantom Stock Units

Director Edward L. Doheny II reports acquiring phantom stock units in Eastman Chemical Co through a directors' deferred compensation plan.

Summary

• On April 5, 2024, Edward L. Doheny II, a director of Eastman Chemical Co, acquired 303 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 and are payable in cash after termination of service as a director.
• The acquisition resulted from 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, Doheny beneficially owns 14,529 phantom stock units, which includes 243 units credited since October 6, 2023, as hypothetical reinvestment of dividend equivalents.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a neutral to slightly positive sentiment as it 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 and invest in phantom stock units.

Future Outlook

The phantom stock units are payable only in cash after termination of service as a director.

Industry Context

Directors' deferred compensation plans are a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Deferred compensation plans for directors are a fairly standard practice among publicly traded companies, including Eastman Chemical Co's peers such as Dow, BASF, and LyondellBasell.
• These plans often involve granting stock options or phantom stock units that vest over time, incentivizing directors to focus on long-term value creation.
• The specific terms of these plans, such as the vesting schedule and payout structure, can vary significantly between companies.

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.

Key Dates