Form 4: Eastman Chemical Co Director Linnie M. Haynesworth Reports Acquisition of Phantom Stock Units

Director Linnie M. Haynesworth reports acquisition of phantom stock units through Eastman Chemical Co's Directors' Deferred Compensation Plan.

Summary

• On April 5, 2024, Linnie M. Haynesworth, a director of Eastman Chemical Co, acquired 303 phantom stock units.
• These units were credited under the Directors' Deferred Compensation Plan.
• The acquisition resulted in a total holding of 1,032 phantom stock units.
• The phantom stock units have a value equal to the market value of one share of Eastman Chemical Co common stock and are payable only 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 into the director's stock account of the Directors' Deferred Compensation Plan.
• The reported holdings include 15 units credited since October 6, 2023, as hypothetical reinvestment of dividend equivalents.

Sentiment

Score: 7

Explanation: The document reflects a standard transaction related to director compensation, indicating a positive alignment of interests between the director and the company's long-term performance. There are no 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 units, indicating a commitment to the company's future.

Future Outlook

The document does not contain specific forward-looking statements, but the director's participation in the deferred compensation plan suggests a long-term commitment to the company.

Industry Context

Director compensation through deferred stock plans is a common practice in publicly traded companies to align the interests of directors with shareholders.

Comparison to Industry Standards

• Many companies, such as Dow Chemical and BASF, offer similar deferred compensation plans for their directors.
• These plans typically allow directors to defer a portion of their fees into stock or stock units, promoting long-term investment in the company's success.
• The specifics of these plans, such as vesting schedules and payout terms, can vary.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence.
• It demonstrates a commitment from leadership to the company's long-term success.

Key Dates