Form 4: Eastman Chemical Co Director Eric L. Butler Reports Changes in Beneficial Ownership

Director Eric L. Butler reports changes in beneficial ownership of Eastman Chemical Co stock due to deferred compensation and dividend reinvestments.

Summary

• On October 7, 2024, Director Eric L. Butler acquired 277 phantom stock units of Eastman Chemical Co (EMN) through the Directors' Deferred Compensation Plan.
• These units represent deferred director's fees that would otherwise have been paid in cash.
• The reporting person now holds 1,762 derivative securities beneficially owned, which includes 23 units credited since April 5, 2024, as hypothetical reinvestment of dividend equivalents.
• The phantom stock units have a value equal to one share of Eastman Chemical Co common stock and are payable only in cash after termination of service as a director.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices and alignment of interests.

Positives

• The director's participation in the deferred compensation plan demonstrates a commitment to the company's long-term success.

Future Outlook

The report does not contain any specific forward-looking statements regarding the company's future performance.

Industry Context

Director compensation plans, including deferred stock units, 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 standard practice among publicly traded companies, including Eastman Chemical's peers such as Dow, BASF, and LyondellBasell.
• These plans often involve granting stock options or restricted stock units that vest over time, aligning director incentives with long-term shareholder value.
• The specific terms of these plans, such as the vesting schedule and the types of equity awards granted, can vary significantly across companies.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with long-term company performance.

Key Dates