Huntsman Corp. recently announced two new corporate initiatives regarding its executive compensation plan and the future of its Textile Effects Division. The initiatives include a review of strategic options for its Textile Effects Division and a multi-year compensation plan designed to align the incentives of Huntsman's management team with the targets presented at the company's Investor Day in November.

The Huntsman board of directors has authorized management to conduct a strategic review of the Textile Effects Division, which is headquartered in Singapore, including a possible sale of the division. The review will begin early in the first quarter of 2022. "We have been transparent about our continued evaluation of divestment opportunities that are both in line with our strategic goals and in the best interests of our shareholders," said Peter R. Huntsman, chairman, president, and CEO. "We believe now is the right time to explore options for Textile Effects. We expect that the division will 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."

Huntsman announced that the company has not set a timetable or a deadline for the conclusion of its evaluation of strategic alternatives for the Textile Effects Division but plans to move expeditiously. Huntsman also stated that it will not comment further unless and until the board has approved a specific course of action or the company has otherwise determined that further disclosure is appropriate or required by law.

The board of directors also authorized management of the company to implement a multi-year compensation plan for all officers and vice presidents. A significant majority of the plan participants' equity incentives will be performance-based and tied to relative total shareholder return and free cash flow measures. In addition, the entirety of the company's incentive cash bonus program will be linked to the achievement of the adjusted EBITDA margin, optimization program, and free cash flow targets set out at the Investor Day.

Learn more at www.huntsman.com.