Form 4: Eastman Chemical Co Director Julie Fasone Holder Reports Acquisition of Phantom Stock Units

Director Julie Fasone Holder reports acquiring 303 phantom stock units of Eastman Chemical Co through a directors' deferred compensation plan.

Summary

• On April 5, 2024, Julie Fasone Holder, a director of Eastman Chemical Co, acquired 303 phantom stock units.
• The acquisition was made under the Directors' Deferred Compensation Plan.
• These units are equivalent 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 was due to the automatic deferral of a portion of the director's annual retainer fees.
• Following the transaction, Holder beneficially owns 12,302 derivative securities, which includes 228 units credited since October 6, 2023, as hypothetical reinvestment of dividend equivalents.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director is increasing their stake in the company through a standard compensation plan, which signals confidence. There are no explicit negative indicators.

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 for the deferral of fees into stock, indicating confidence in the company's future.

Future Outlook

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

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 standard practice among publicly listed companies, including Eastman Chemical Co's peers such as Dow Inc. and LyondellBasell Industries.
• These plans typically allow directors to defer a portion of their fees into stock or stock-equivalent units, fostering a long-term perspective.
• The specific terms of these plans, such as vesting schedules and payout methods, can vary across companies.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term success.
• There is no immediate impact on employees, customers, suppliers, or creditors.

Key Dates