Form 4: Eastman Chemical Co Director Eric L. Butler Reports Acquisition of Phantom Stock Units
SEC Form 4
Director Eric L. Butler reports acquisition of phantom stock units through Eastman Chemical Co's Directors' Deferred Compensation Plan.
Summary
- On April 5, 2024, Eric L. Butler, a director of Eastman Chemical Co, acquired 303 phantom stock units.
- These units were credited under the Directors' Deferred Compensation Plan.
- The acquisition was due to the automatic deferral of a portion of the director's annual retainer fees.
- Each phantom stock unit has a value equal to the market value of one share of Eastman Chemical Co common stock and is payable only in cash after termination of service as a director.
- Following the transaction, Butler directly owns 1,462 derivative securities, which includes 23 units credited since October 6, 2023, as hypothetical reinvestment of dividend equivalents.
Sentiment
Score: 7
Explanation: The document reflects a routine transaction related to executive compensation, indicating a neutral to slightly positive sentiment as it aligns director interests with the company's long-term performance.
Future Outlook
The phantom stock units are payable only in cash after termination of service as a director.
Industry Context
This filing reflects standard executive compensation practices, utilizing deferred compensation plans to align director interests with long-term company performance.
Comparison to Industry Standards
- Deferred compensation plans are a common practice among publicly traded companies to incentivize and retain board members.
- Companies like Dow and DuPont also utilize similar deferred compensation structures for their directors.
- The specifics of the plans, such as vesting schedules and payout methods, can vary but the underlying principle of aligning director compensation with shareholder value remains consistent.
Stakeholder Impact
- The acquisition of phantom stock units aligns the director's interests with those of the shareholders, as the value of the units is tied to the company's stock performance.
Key Dates
| Date | Description |
|---|---|
| 10/06/2023 | Start date for hypothetical reinvestment of dividend equivalents, resulting in 23 units credited since this date. |
| 04/05/2024 | Date of transaction: Acquisition of 303 phantom stock units. |
| 04/09/2024 | Date of report submission. |
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