Eastman Chemical CEO's Compensation Drops In 2008

In 2007 Ferguson received a compensation package valued at $7.9 million.

The AP's calculations of total compensation include salary, bonus, performance-related incentives, perks, any above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. They may vary from totals listed in the summary compensation table in the company's proxy filed with the SEC.

According to an Eastman Chemical proxy filing, the compensation committee benchmarks its executive pay practices against a peer group of companies that includes Dow Chemical Co., DuPont and Nalco Co.

The committee also has established a guideline for Ferguson to own shares having a value of five times his base salary in order to align his interests with those of shareholders.

Eastman makes chemicals that go into a wide array of products, including fibers, plastics and pharmaceuticals.

For the 2008 fiscal year, Eastman's profit jumped to $346 million, or $4.55 per share, from $300 million, or $3.58. Sales fell about 2 percent to $6.73 billion.

The company's stock fell 48 percent in 2008 to close the year at $31.71.