Huntsman Corporation (HUN) Announces Strategic Textiles Review and New Compensation Plan; Rise in shares
What’s going on with HUN?
Huntsman Corporation (HUN) shares rose today after the company, a U.S. organic chemicals maker, today announced two significant corporate initiatives: a review of strategic options for its Textile Effects division and a multi-year compensation plan.
The compensation plan is designed to align the incentives of the company’s leadership team with the goals presented on its Investor Day in November.
HUN shares rose 3.75% to $ 34.90 at 10:34 a.m. on Wednesday.
What does this mean for Huntsman Corporation?
Huntsman’s new compensation plan will feature equity incentives that are performance-based and linked to relative measures of total shareholder return and free cash flow.
In addition, the entire Company cash incentive program will be linked to the achievement of Adjusted EBITDA margin.
Regarding the company’s textile effects division, Huntsman revealed that the review process will begin in early Q1 2022.
Speaking on the Textiles Strategic Review, Peter R. Huntsman, Chairman, President and CEO, commented, “We believe the time has come to explore the options for Textile Effects. We expect the division to generate nearly $ 100 million in Adjusted EBITDA in 2021, recovering much of what was lost due to COVID-19. “
“While its value-added portfolio of sustainable products aligns with Huntsman’s strategic direction, there may well be an outside party who recognizes the value of these extremely attractive assets and is a better owner for them. “
HUN has a Long Term Tech Rank of 86. Find out what that means to you and get the rest of the rank on HUN!
Huntsman Corp is an American manufacturer of differentiated organic chemicals. Its product portfolio includes methyl diphenyl diisocyanate (MDI), amines, surfactants, maleic anhydride, epoxy-based polymer formulations, textile chemicals, dyes and more. The company’s products are used in adhesives, aerospace, automotive, construction products, among others. Its operating segments are polyurethanes, performance products, advanced materials and textile effects. It derives most of its revenue from the Polyurethanes segment, which includes MDI, polyols, TPU (thermoplastic polyurethane) and other polyurethane related products. Its geographic segments are the United States and Canada, Europe, Asia-Pacific and the Rest of the World.