Eastman Chemical CEO's Compensation Drops In 2008

ERNEST SCHEYDER

NEW YORK (AP) — The chairman and chief executive of Eastman Chemical Co. received compensation valued at $6.3 million in 2008, a nearly 20 percent increase from the previous year, according to an Associated Press calculation of figures disclosed in a regulatory filing.

The Kingsport, Tenn.-based company paid J. Brian Ferguson a salary of $1.1 million, down less than 1 percent from the previous year, and a performance-related cash bonus of $925,000, down 38 percent year over year.

The drop in performance-related cash bonus was largely due to the Eastman Chemical's failure to meet certain earnings targets, the company said.

Ferguson, 54, also received other compensation of $202,179, including $52,544 for personal use of the company jet, $947 for home security and $14,535 for financial counseling.

The decrease in total compensation was partly due to a nearly 19 percent drop in stock- and option-based compensation to $4.1 million when shares and options were issued in January and October of last year. That stock is now worth less due to a drop in the share price.