Huntsman Corporation 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 management team with the targets presented at its Investor Day.
Peter Huntsman’s new compensation plan will feature performance-based equity incentives and tied to relative Total Shareholder Return and Free Cash Flow measures. Regarding the company’s Textile Effects Division, Huntsman disclosed that the review process will begin early in the first quarter of 2022. Huntsman Corp is a US-based manufacturer of differentiated organic chemical products. Its product portfolio comprises methyl diphenyl diisocyanate (MDI), amines, surfactants, maleic anhydride, epoxy-based polymer formulations, textile chemicals, dyes, and other chemicals. The company’s products are used in adhesives, aerospace, automotive, and construction products. Its operating segments are Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. R. Huntsman, Chairman, President, and CEO Huntsman, said, “We believe now is the right time to explore options for Textile Effects. We expect the division to generate close to $100 million of Adjusted EBITDA in 2021, recovering much of what was lost due to COVID-19. While its value-added portfolio of sustainable products is consistent with Huntsman’s strategic direction, there may well be an external party that recognizes the value of these extremely attractive assets and will be a better owner for them.”
