Olin Corporation (NYSE:OLN), a Virginia-based chemicals and allied products company, announced an amendment to its executive compensation program. The firm's Benefit Plan Review Committee has revamped its supplemental employee ownership plan, now to be known as the Olin Corporation Supplemental Retirement Savings Plan, effective October 1, 2024.
The update, which primarily took effect from January 1, 2024, includes several discretionary changes aligning with Olin's tax-qualified retirement savings plan. Notably, the amendments involve revisions to investment election and option provisions, permitting the establishment of a rabbi trust to fund the plan, and other clarifications to its operations.
This move is part of the company's ongoing efforts to ensure competitive compensation for its executives. The establishment of a rabbi trust, a vehicle for setting aside funds for the plan, signifies Olin's commitment to fulfilling its deferred compensation obligations.
The details of the changes were disclosed in the company's 8-K filing with the Securities and Exchange Commission on September 30, 2024. The full text of the updated supplemental plan was attached to the filing as Exhibit 10.1, providing complete information on the material terms of the amendments.
Olin Corporation, headquartered in Clayton, Missouri, operates under the name 08 Industrial Applications and Services. The company's common stock is listed on the New York Stock Exchange under the ticker symbol OLN.
In other recent news, Olin Corporation announced an upcoming trading blackout period for its employee benefit plan, the Olin Corporation Contributing Employee Ownership Plan (CEOP).
The blackout is scheduled to begin on September 26, 2024, and is expected to conclude the week of October 13, 2024, during which employees will not be able to access their accounts or initiate transactions. This suspension is due to the transition of plan administrative services from Voya to Empower.
Olin Corporation has also seen a series of financial revisions from various analyst firms. BMO Capital initiated coverage on the company with a Market Perform rating, expressing caution due to the current lack of visibility around a turnaround in Olin's end-markets and new capacity additions in the industry.
Piper Sandler reduced its price target for Olin, while BofA Securities downgraded Olin's stock from Buy to Neutral, and JPMorgan (NYSE:JPM) upgraded Olin's stock from Neutral to Overweight.
Following disruptions caused by Hurricane Beryl, Olin has resumed chlor-alkali production, lifting its systemwide force majeure on chlor-alkali products. The company's new EBITDA guidance is set at approximately $940 million, or $1,040 million when excluding the impact of Hurricane Beryl. KeyBanc, RBC Capital, and Citi also revised their price targets for Olin due to a challenging second half of the year. These are all recent developments for Olin Corporation.
InvestingPro Insights
As Olin Corporation (NYSE:OLN) updates its executive compensation program, it's worth noting some key financial metrics and insights from InvestingPro that provide context to the company's current position.
According to InvestingPro data, Olin's market capitalization stands at $5.59 billion, with a P/E ratio of 20.55. The company's revenue for the last twelve months as of Q2 2024 was $6.57 billion, although it experienced a revenue decline of 16.32% during this period.
Two relevant InvestingPro Tips highlight Olin's financial strategy and shareholder value:
1. Management has been aggressively buying back shares, which aligns with the company's focus on enhancing shareholder value, as evidenced by the recent changes to the executive compensation program.
2. Olin has maintained dividend payments for 51 consecutive years, demonstrating a long-term commitment to returning value to shareholders. This consistency in dividend payments complements the company's efforts to attract and retain top executive talent through competitive compensation packages.
These insights suggest that while Olin is making changes to its executive compensation, it's also maintaining a strong focus on shareholder returns. For investors interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further context to Olin's financial health and market position.
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