XML 121 R2.htm IDEA: XBRL DOCUMENT v3.23.1
Pay vs Performance Disclosure
Unit_pure in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Pay vs Performance Disclosure [Table]      
Pay vs Performance [Table Text Block]
Pay Versus Performance
In accordance with rules adopted by the SEC pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, we provide the following disclosure regarding executive compensation for our principal executive officer (“PEO”) and our
Non-PEO
named executive officers (“Other NEOs”) and Company performance for the fiscal years listed below. The following tables and related disclosures provide information about (i) the “total compensation” of our PEO and our Other NEOs as presented in the on page 67, (ii) the “compensation actually paid” to our PEO and our Other NEOs, as calculated pursuant to the SEC’s
pay-versus-performance
rules, (iii) certain financial per
forman
ce measures, and (iv) th
e relatio
nship of the compensation actually paid to those financial performance measures.
This disclosure has been prepared in accordance with Item 402(v) of Regulation
S-K
under the Exchange Act and does not necessarily reflect value actually realized by the executives or how our Compensation Committee evaluates compensation decisions in light of Company or individual performance. The Compensation Committee did not consider this pay versus performance disclosure below in making its pay decisions for any of the years shown. For discussion of how our Compensation Committee seeks to align pay with performance when making compensation decisions, please review Compensation Discussion and Analysis beginning on page 46.
 
               
   Year (a)
  
Summary
Compensation
Table Total
for PEO
(b)
1
    
Compensation
Actually Paid
to PEO
(c)
1, 2
    
Average
Summary
Compensation
Table Total for
Other NEOs
(d)
1
    
Average
Compensation
Actually Paid
to Other
NEOs
(e)
1,2
    
Value of Initial Fixed $100
Investment Based On:
    
Net  
Income  
($  
millions)  
(h)  
    
Adjusted  
EBIT  
($  
millions)  
(i)
4
  
  
 
 
Total
Shareholder
Return

(f)
 
 
 

 
  
 
Peer Group  
Total  
Shareholder  
Return  

(g)
3
  
 
 
 
 

 
                 
  2022   $ 17,068,131     ($ 12,049,295 )    $ 4,384,699     ($ 1,407,170 )    $ 113.16     $ 131.59     $ 793     $ 1,339  
                 
  2021   $ 17,798,861      $ 33,704,535     $ 5,398,736      $ 8,450,911     $ 162.50     $ 148.89     $ 857     $ 1,635  
                 
  2020   $ 13,561,990      $ 30,582,035     $ 3,791,700      $ 6,235,050     $ 131.49     $ 118.22     $ 478     $ 1,216  
1. Mark J. Costa was our PEO for each year presented. The individuals comprising the Other NEOs for each year presented are listed below.
 
     
2020
  
2021
  
2022
Curtis E. Espeland   William T. McLain, Jr.   William T. McLain, Jr.
Brad A. Lich   Brad A. Lich   Brad A. Lich
Lucian Boldea   Lucian Boldea  
Stephen G. Crawford
William T. McLain, Jr.   Stephen G. Crawford  
Perry Stuckey III
Kellye L. Walker  
 
  
 
2. The amounts shown for Compensation Actually Paid have been calculated in accordance with Item 402(v) of Regulation
S-K
and do not reflect compensation actually earned, realized, or received by the Company’s NEOs. These amounts reflect the Total with certain adjustments. Compensation Actually Paid reflects the exclusions and inclusions of certain amounts for the PEO and the Other NEOs as prescribed by SEC rules and as set forth below. Equity values are calculated in accordance with FASB ASC Topic 718. Amounts in the Exclusion of Stock Awards and Option Awards columns are the totals from the Stock Awards and Option Awards columns set forth in the
. Amounts in the Exclusion of Change in Pension Value column reflect the amounts attributable to the Change in
 
 
Pension Value reported in the
. Amounts in the Inclusion of Pension Service Cost are based on the service cost for services rendered during the listed year.
 
   Year
  
 
Summary
Compensation
Table Total for
Mark J. Costa
($)




 
  
Exclusion of
Change in
Pension Value
for Mark J. Costa
($)
  
Exclusion of
Stock Awards
and Option Awards for Mark
J. Costa
($)
  
Inclusion of
Pension Service
Cost for Mark J.
Costa
($)
  
Inclusion of
Equity Values for
Mark J. Costa
($)
  
Compensation
Actually Paid to
Mark J. Costa
($)
  2022     $17,068,131     $305,653   $14,822,129   $301,111   ($14,290,755)   ($12,049,295)
  2021     17,798,861     172,210   12,382,689   312,228   28,148,345    33,704,535 
  2020     13,561,990     538,236   9,503,799   274,591   26,787,489    30,582,035 
 
   Year
  
Average
Summary
Compensation
Table Total for
Other NEOs
($)
  
Average
Exclusion of
Change in
Pension Value
for Other NEOs
($)
  
Average
Exclusion of
Stock Awards
and Options
Awards for Other NEOs
($)
  
Average
Inclusion of
Pension Service
Cost for Other NEOs
($)
  
Average
Inclusion of
Equity Values for
Other NEOs
($)
  
Average
Compensation
Actually Paid to
Other NEOs
($)
  2022  
$4,384,699
   $160,469  
$3,132,567
  
$123,170
   ($2,622,003)   ($1,407,170)
  2021   5,398,736   213,311   3,202,386   128,802   6,339,070    8,450,911 
  2020   3,791,700   215,708   2,347,855   80,866   4,926,047    6,235,050 
The amounts in the Inclusion of Equity Values in the tables above are derived from the amounts set forth in the following tables:
 
   Year
  
Year-End
Fair
Value of
Equity Awards
Granted
During Year
That
Remained
Unvested as
of Last Day of
Year for Mark
J. Costa
($)
    
Change in Fair
Value from
Last Day of
Prior Year to
Last Day of
Year of
Unvested
Equity Awards
for Mark J.
Costa
($)
  
Vesting-Date
Fair Value of
Equity Awards
Granted
During Year
that Vested
During Year
for Mark J.
Costa
($)
  
Change in Fair
Value from
Last Day of
Prior Year to
Vesting Date
of Unvested
Equity Awards
that Vested
During Year
for Mark J.
Costa
($)
  
Fair Value at
Last Day of
Prior Year of
Equity Awards
Forfeited
During Year
for Mark J.
Costa
($)
  
Value of
Dividends or
Other
Earnings Paid
on Stock or
Option
Awards Not
Otherwise
Included for
Mark J. Costa
($)
  
Total -
Inclusion of
Equity Values
for Mark J.
Costa
($)
  2022   $ 7,154,574     ($10,318,276)   $0   ($11,127,053)   $0   $0   ($14,290,755)
  2021     16,317,961     9,270,244    0   2,560,140    0   0   28,148,345 
  2020     20,245,424     5,183,609    0   1,358,456    0   0   26,787,489 
 
   Year
  
Average Year-

End Fair Value
of Equity
Awards
Granted
During Year
That
Remained
Unvested as
of Last Day of
Year for Other
NEOs
($)
  
Average
Change in Fair
Value from
Last Day of
Prior Year to
Last Day of
Year of
Unvested
Equity Awards
for Other
NEOs
($)
  
Average
Vesting-Date
Fair Value of
Equity Awards
Granted
During Year
that Vested
During Year
for Other
NEOs
($)
  
Average
Change in Fair
Value from
Last Day of
Prior Year to
Vesting Date
of Unvested
Equity Awards
that Vested
During Year
for Other
NEOs
($)
  
Average Fair
Value at Last
Day of Prior
Year of Equity
Awards
Forfeited
During Year
for Other
NEOs
($)
  
Average Value
of Dividends
or Other
Earnings Paid
on Stock or
Option
Awards Not
Otherwise
Included for
Other
NEOs
($)
  
Total -
Average
Inclusion of
Equity Values
for Other
NEOs
($)
  2022   $1,512,081   ($2,191,529)   $0  
($1,942,555)
  
$0 
   $0   ($2,622,003)
  2021   4,101,763   1,772,446    0   464,861    0    0   6,339,070 
  2020   4,194,758   774,091    0   161,806    (204,608)   0   4,926,047 
 
 
3. The Peer Group TSR set forth in this table utilizes the Company’s peer group, the S&P 1500 Chemicals Industry Index, which we also utilize in the stock performance graph required by Item 201(e) of Regulation
S-K
included in our Annual Report for the year ended December 31, 2022. The comparison assumes $100 was invested for the period starting December 31, 2019, through the end of the listed year in the Company and in the S&P 1500 Chemicals Industry Index. Historical stock performance is not necessarily indicative of future stock performance.
4. We determined Adjusted EBIT, a Non-GAAP measure, to be the most important financial performance measure used to link Company performance to Compensation Actually Paid to our PEO and Other NEOs in 2022. This performance measure may not have been the most important financial performance measure for years 2021 and 2020, and we may determine a different financial performance measure to be the most important financial performance measure in future years. Adjusted EBIT is defined as set forth above under “Compensation Discussion and Analysis — Elements of Our Executive Compensation.” See Annex A of this proxy statement for a reconciliation of financial measures under accounting principles generally accepted in the United States (“GAAP”) to Adjusted EBIT, a description of excluded items, and related information.
   
Company Selected Measure Name Adjusted EBIT    
Named Executive Officers, Footnote [Text Block] Mark J. Costa was our PEO for each year presented. The individuals comprising the Other NEOs for each year presented are listed below.
     
2020
  
2021
  
2022
Curtis E. Espeland   William T. McLain, Jr.   William T. McLain, Jr.
Brad A. Lich   Brad A. Lich   Brad A. Lich
Lucian Boldea   Lucian Boldea  
Stephen G. Crawford
William T. McLain, Jr.   Stephen G. Crawford  
Perry Stuckey III
Kellye L. Walker  
 
  
 
    
Peer Group Issuers, Footnote [Text Block] The Peer Group TSR set forth in this table utilizes the Company’s peer group, the S&P 1500 Chemicals Industry Index, which we also utilize in the stock performance graph required by Item 201(e) of Regulation
S-K
included in our Annual Report for the year ended December 31, 2022. The comparison assumes $100 was invested for the period starting December 31, 2019, through the end of the listed year in the Company and in the S&P 1500 Chemicals Industry Index. 		   
PEO Total Compensation Amount $ 17,068,131 $ 17,798,861 $ 13,561,990
PEO Actually Paid Compensation Amount $ (12,049,295) 33,704,535 30,582,035
Adjustment To PEO Compensation, Footnote [Text Block]
 
   Year
  
 
Summary
Compensation
Table Total for
Mark J. Costa
($)




 
  
Exclusion of
Change in
Pension Value
for Mark J. Costa
($)
  
Exclusion of
Stock Awards
and Option Awards for Mark
J. Costa
($)
  
Inclusion of
Pension Service
Cost for Mark J.
Costa
($)
  
Inclusion of
Equity Values for
Mark J. Costa
($)
  
Compensation
Actually Paid to
Mark J. Costa
($)
  2022     $17,068,131     $305,653   $14,822,129   $301,111   ($14,290,755)   ($12,049,295)
  2021     17,798,861     172,210   12,382,689   312,228   28,148,345    33,704,535 
  2020     13,561,990     538,236   9,503,799   274,591   26,787,489    30,582,035 
 
   Year
  
Year-End
Fair
Value of
Equity Awards
Granted
During Year
That
Remained
Unvested as
of Last Day of
Year for Mark
J. Costa
($)
    
Change in Fair
Value from
Last Day of
Prior Year to
Last Day of
Year of
Unvested
Equity Awards
for Mark J.
Costa
($)
  
Vesting-Date
Fair Value of
Equity Awards
Granted
During Year
that Vested
During Year
for Mark J.
Costa
($)
  
Change in Fair
Value from
Last Day of
Prior Year to
Vesting Date
of Unvested
Equity Awards
that Vested
During Year
for Mark J.
Costa
($)
  
Fair Value at
Last Day of
Prior Year of
Equity Awards
Forfeited
During Year
for Mark J.
Costa
($)
  
Value of
Dividends or
Other
Earnings Paid
on Stock or
Option
Awards Not
Otherwise
Included for
Mark J. Costa
($)
  
Total -
Inclusion of
Equity Values
for Mark J.
Costa
($)
  2022   $ 7,154,574     ($10,318,276)   $0   ($11,127,053)   $0   $0   ($14,290,755)
  2021     16,317,961     9,270,244    0   2,560,140    0   0   28,148,345 
  2020     20,245,424     5,183,609    0   1,358,456    0   0   26,787,489 
    
Non-PEO NEO Average Total Compensation Amount $ 4,384,699 5,398,736 3,791,700
Non-PEO NEO Average Compensation Actually Paid Amount $ (1,407,170) 8,450,911 6,235,050
Adjustment to Non-PEO NEO Compensation Footnote [Text Block]
   Year
  
Average
Summary
Compensation
Table Total for
Other NEOs
($)
  
Average
Exclusion of
Change in
Pension Value
for Other NEOs
($)
  
Average
Exclusion of
Stock Awards
and Options
Awards for Other NEOs
($)
  
Average
Inclusion of
Pension Service
Cost for Other NEOs
($)
  
Average
Inclusion of
Equity Values for
Other NEOs
($)
  
Average
Compensation
Actually Paid to
Other NEOs
($)
  2022  
$4,384,699
   $160,469  
$3,132,567
  
$123,170
   ($2,622,003)   ($1,407,170)
  2021   5,398,736   213,311   3,202,386   128,802   6,339,070    8,450,911 
  2020   3,791,700   215,708   2,347,855   80,866   4,926,047    6,235,050 
 
   Year
  
Average Year-

End Fair Value
of Equity
Awards
Granted
During Year
That
Remained
Unvested as
of Last Day of
Year for Other
NEOs
($)
  
Average
Change in Fair
Value from
Last Day of
Prior Year to
Last Day of
Year of
Unvested
Equity Awards
for Other
NEOs
($)
  
Average
Vesting-Date
Fair Value of
Equity Awards
Granted
During Year
that Vested
During Year
for Other
NEOs
($)
  
Average
Change in Fair
Value from
Last Day of
Prior Year to
Vesting Date
of Unvested
Equity Awards
that Vested
During Year
for Other
NEOs
($)
  
Average Fair
Value at Last
Day of Prior
Year of Equity
Awards
Forfeited
During Year
for Other
NEOs
($)
  
Average Value
of Dividends
or Other
Earnings Paid
on Stock or
Option
Awards Not
Otherwise
Included for
Other
NEOs
($)
  
Total -
Average
Inclusion of
Equity Values
for Other
NEOs
($)
  2022   $1,512,081   ($2,191,529)   $0  
($1,942,555)
  
$0 
   $0   ($2,622,003)
  2021   4,101,763   1,772,446    0   464,861    0    0   6,339,070 
  2020   4,194,758   774,091    0   161,806    (204,608)   0   4,926,047 
 
    
Compensation Actually Paid vs. Total Shareholder Return [Text Block]
Description of Relationship Between PEO and Other NEOs Compensation Actually Paid and Company TSR
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Other NEOs, and the Company’s cumulative TSR over the three most recently completed fiscal years.
 
 
LOGO 		   
Compensation Actually Paid vs. Net Income [Text Block]
Description of Relationship Between PEO and Other NEO Compensation Actually Paid and Net Income
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Other NEOs, and our Net Income during the three most recently completed fiscal years.
 
 
LOGO 		   
Compensation Actually Paid vs. Company Selected Measure [Text Block]
Description of Relationship Between PEO and Other NEO Compensation Actually Paid and Eastman Chemical Company Adjusted EBIT
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Other NEOs, and Eastman Chemical Adjusted EBIT during the three most recently completed fiscal years.
 
 
LOGO 		   
Total Shareholder Return Vs Peer Group [Text Block]
Description of Relationship Between Company TSR and Peer Group TSR
The following chart compares our cumulative TSR over the three most recently completed fiscal years to that of the S&P1500 Chemicals Index over the same period.
 
LOGO 		   
Tabular List [Table Text Block]
Tabular List of Most Important Financial Performance Measures
The following table presents the financial performance measures that the Company considered the most important in linking Compensation Actually Paid to our PEO and Other NEOs for 2022 to Company performance. The measures in this table are not ranked.
 
 
  Adjusted Earnings Before Interest and Taxes (EBIT)
 
 
  Operating Cash Flow
 
 
  Relative Total Shareholder Return
 
 
  Return on Invested Capital
 
    
Total Shareholder Return Amount $ 113.16 162.5 131.49
Peer Group Total Shareholder Return Amount 131.59 148.89 118.22
Net Income (Loss) $ 793,000,000 $ 857,000,000 $ 478,000,000
Company Selected Measure Amount 1,339 1,635 1,216
PEO Name Mark J. Costa    
Measure [Axis]: 1      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted Earnings Before Interest and Taxes (EBIT)    
Non-GAAP Measure Description [Text Block] We determined Adjusted EBIT, a Non-GAAP measure, to be the most important financial performance measure used to link Company performance to Compensation Actually Paid to our PEO and Other NEOs in 2022. This performance measure may not have been the most important financial performance measure for years 2021 and 2020, and we may determine a different financial performance measure to be the most important financial performance measure in future years. Adjusted EBIT is defined as set forth above under “Compensation Discussion and Analysis — Elements of Our Executive Compensation.”    
Measure [Axis]: 2      
Pay vs Performance Disclosure [Table]      
Measure Name Operating Cash Flow    
Measure [Axis]: 3      
Pay vs Performance Disclosure [Table]      
Measure Name Relative Total Shareholder Return    
Measure [Axis]: 4      
Pay vs Performance Disclosure [Table]      
Measure Name Return on Invested Capital    
PEO [Member] | Exclusion Of Change In Pension Value [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount $ 305,653 $ 172,210 $ 538,236
PEO [Member] | Exclusion Of Stock Awards And Option Awards [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 14,822,129 12,382,689 9,503,799
PEO [Member] | Inclusion Of Pension Service Cost [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 301,111 312,228 274,591
PEO [Member] | Inclusion Of Equity Values [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (14,290,755) 28,148,345 26,787,489
PEO [Member] | Year End Fair Value Of Equity Awards Granted During Year That Remained Unvested As Of Last Day Of Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 7,154,574 16,317,961 20,245,424
PEO [Member] | Change In Fair Value From Last Day Of Prior Year To Last Day Of Year Of Unvested Equity Awards [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (10,318,276) 9,270,244 5,183,609
PEO [Member] | Vesting Date Fair Value Of Equity Awards Granted During Year That Vested During Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
PEO [Member] | Change In Fair Value From Last Day Of Prior Year To Vesting Date Of Unvested Equity Awards That Vested During Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (11,127,053) 2,560,140 1,358,456
PEO [Member] | Fair Value At Last Day Of Prior Year Of Equity Awards Forfeited During Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
PEO [Member] | Value Of Dividends Or Other Earnings Paid On Stock Or Option Awards Not Otherwise Included [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | Exclusion Of Change In Pension Value [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 160,469 213,311 215,708
Non-PEO NEO [Member] | Exclusion Of Stock Awards And Option Awards [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 3,132,567 3,202,386 2,347,855
Non-PEO NEO [Member] | Inclusion Of Pension Service Cost [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 123,170 128,802 80,866
Non-PEO NEO [Member] | Inclusion Of Equity Values [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (2,622,003) 6,339,070 4,926,047
Non-PEO NEO [Member] | Year End Fair Value Of Equity Awards Granted During Year That Remained Unvested As Of Last Day Of Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 1,512,081 4,101,763 4,194,758
Non-PEO NEO [Member] | Change In Fair Value From Last Day Of Prior Year To Last Day Of Year Of Unvested Equity Awards [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (2,191,529) 1,772,446 774,091
Non-PEO NEO [Member] | Vesting Date Fair Value Of Equity Awards Granted During Year That Vested During Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 0
Non-PEO NEO [Member] | Change In Fair Value From Last Day Of Prior Year To Vesting Date Of Unvested Equity Awards That Vested During Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (1,942,555) 464,861 161,806
Non-PEO NEO [Member] | Fair Value At Last Day Of Prior Year Of Equity Awards Forfeited During Year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 0 0 (204,608)
Non-PEO NEO [Member] | Value Of Dividends Or Other Earnings Paid On Stock Or Option Awards Not Otherwise Included [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount $ 0 $ 0 $ 0