SCHEDULE 14A INFORMATION

                 Proxy Statement Pursuant to Section 14(a) of
                      the Securities Exchange Act of 1934
Filed by the Registrant  [X]
Filed by a Party other than the Registrant  [_]
Check the appropriate box:
[_] Preliminary Proxy Statement
[_] CONFIDENTIAL, FOR USE OF THE
    COMMISSION ONLY (AS PERMITTED BY
    RULE 14A-6(E)(2))
[X] Definitive Proxy Statement
[_] Definitive Additional Materials
[_] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12


--------------------------------------------------------------------------------
             (Name of Registrant as Specified In Its Certificate)

--------------------------------------------------------------------------------
   (Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
    1) Title of each class of securities to which transaction applies:
    ----------------------------------------------------------------------------
    2) Aggregate number of securities to which transaction applies:
    ----------------------------------------------------------------------------
    3) Per unit price or other underlying value of transaction computed
       pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
       filing fee is calculated and state how it was determined):
    ----------------------------------------------------------------------------
    4) Proposed maximum aggregate value of transaction:
    ----------------------------------------------------------------------------
    5) Total fee paid:
    ----------------------------------------------------------------------------
[_] Fee paid previously with preliminary materials.

[_] Check box if any part of the fee is offset as provided by Exchange Act Rule
    0-11(a)(2) and identify the filing for which the offsetting fee was paid
    previously. Identify the previous filing by registration statement number,
    or the Form or Schedule and the date of its filing.
    1) Amount Previously Paid:
    ----------------------------------------------------------------------------
    2) Form, Schedule or Registration Statement No.:  PRELIMINARY PROXY
    ----------------------------------------------------------------------------
    3) Filing Party:  LAM RESEARCH CORPORATION
    ----------------------------------------------------------------------------
    4) Date Filed:  APRIL   , 2001
    ----------------------------------------------------------------------------
Notes:
Reg. (S) 240.14a-101.
SEC 1913 (3-99)



[LOGO] Olin

                501 MERRITT 7, NORWALK, CONNECTICUT 06856-4500

                                                                 March 12, 2002

         Dear Olin Shareholder:

            We cordially invite you to attend our 2002 annual meeting of
         shareholders.

            This booklet includes the notice and proxy statement, which
         describes the business we will conduct at the meeting and provides
         information about Olin that you should consider when you vote your
         shares. We have not planned a communications segment or any multimedia
         presentations for the 2002 annual meeting.

            This year, we have prepared the proxy statement in a format that we
         hope is easier to understand. The Securities and Exchange Commission
         encourages companies to write documents for investors in plain
         English, and we support this effort. We hope you like the new format,
         and we welcome your comments.

            Whether or not you plan to attend, it is important that your shares
         are represented and voted at the annual meeting. If you do not plan to
         attend the annual meeting, you may vote your shares on the Internet,
         by telephone or by completing and returning the proxy card in the
         enclosed envelope. If you plan to attend the annual meeting, please
         bring the lower half of your proxy card to use as your admission
         ticket for the meeting.

            At last year's annual meeting more than 91% of our shares were
         represented in person or by proxy. We hope for the same high level of
         representation at this year's meeting and we urge you to vote as soon
         as possible.

                                                   Sincerely,

                                          /s/ Donald W. Griffin
                                                Donald W. Griffin
                                               Chairman of the Board

                            YOUR VOTE IS IMPORTANT

 We urge you to promptly vote your shares on the Internet, by telephone or by
    signing, dating and returning your proxy card in the enclosed envelope.



                               OLIN CORPORATION

                   Notice of Annual Meeting of Shareholders

Time:          8:30 a.m. (Eastern Daylight time)

Date:          Thursday, April 25, 2002

Place:         Riverview Cafeteria 301 Merritt 7 Norwalk, Connecticut

Purpose:       To consider and act upon the following:

                   (1)The election of three Directors to serve for three-year
                      terms expiring in 2005, and one Director to serve until
                      2003.

                   (2)Ratification of the appointment of independent auditors
                      for 2002.

                   (3)Such other business that is properly presented at the
                      meeting.

Who May Vote:  You may vote if you were the record owner of Olin common stock
               at the close of business on February 28, 2002.

                             By Order of the Board of Directors:


                                            /s/ Stuart Roth
                                            Stuart Roth
                                             Secretary

Norwalk, Connecticut
March 12, 2002



                               OLIN CORPORATION

                                PROXY STATEMENT

                               -----------------

                        ANNUAL MEETING OF SHAREHOLDERS

                           To be Held April 25, 2002

GENERAL QUESTIONS
-----------------------

Why did I receive this proxy statement?

   You received this proxy statement because you owned shares of Olin common
stock at the close of business on February 28, 2002. Olin's Board of Directors
is asking you to vote at the 2002 annual meeting in favor of the matters listed
in the notice of the annual meeting of shareholders. This proxy statement
describes the matters on which we would like you to vote and provides
information so that you can make an informed decision.

When was this proxy material mailed to shareholders?

   We began to mail the proxy statement and form of proxy to shareholders on or
about March 12, 2002.

What if I have questions?

   If you have questions, please write them down and send them to the Secretary
at Olin's principal executive office at 501 Merritt 7, PO Box 4500, Norwalk, CT
06856-4500.

What will I be voting on?

   You will be voting on:

       (1)the election of four Directors,

       (2)the ratification of KPMG LLP as Olin's independent auditors for 2002,
          and

       (3)any other business if properly presented at the annual meeting.

Could other matters be voted on at the annual meeting?

   As of March 12, 2002, the election of four Directors and the ratification of
KPMG LLP as Olin's independent auditors for 2002 are the only matters being
presented for consideration. We know of no other matters to be considered at
the annual meeting. If any other matters are properly presented for action, the
persons named in the accompanying form of proxy will vote the proxy in
accordance with their best judgment and opinion as to what is in the best
interests of Olin.

How does the Board recommend I vote on the proposals?

   The Board recommends a vote for each of the Director nominees and for the
appointment of KPMG LLP as Olin's independent auditors for 2002.



VOTING

Who can vote?

   All shareholders of record at the close of business on February 28, 2002 are
entitled to vote at the annual meeting.

How many votes can be cast by all shareholders?

   At the close of business on February 28, 2002, the record date for voting,
we had outstanding 43,479,806 shares of Olin common stock, par value $1 per
share. Each shareholder on the record date may cast one vote for each full
share owned.

How do I vote?

   You may vote either in person at the annual meeting or by proxy. To vote by
proxy, you must select one of the following options:

..  Completethe enclosed proxy card:

..  Completeall of the required information on the proxy card.
..  Dateand sign the proxy card.
..  Returnthe proxy card in the enclosed postage-paid envelope. We must receive
         the proxy card  not later than the day before the annual meeting for
         your proxy to be valid and for your vote to  count.
..  Ifyou are not the shareholder of record and hold shares through a custodian,
     broker or other  agent, such agent may have special voting instructions
     that you should follow.

..  Voteby telephone (telephone voting instructions are printed on the proxy
       card):
..  Callthe toll-free voting telephone number: 1-800-435-6710.
..  Enteryour voter control number located at the bottom of your proxy card.
..  Followand comply with the recorded instructions before the indicated
         deadline on April 24,  2002.
..  Ifyou are not the shareholder of record and hold shares through a custodian,
     broker or other  agent, such agent may have special voting instructions
     that you should follow.

..  Voteon the Internet (Internet voting instructions are printed on the proxy
       card):
..  Accesshttp://www.eproxy.com/oln
..  Followthe instructions provided on the site and log on using your voter
         control number located  at the bottom of your proxy card.
..  Submitthe electronic proxy before the indicated deadline on April 24, 2002.
..  Ifyou are not the shareholder of record but hold shares through a custodian,
     broker or other  agent, such agent may have special voting instructions
     that you should follow.

   Telephone and Internet voting ends at 4:00 p.m., Eastern time, on April 24,
2002. If you vote in a timely manner by the Internet or telephone, you do not
have to return your proxy card for your vote to count. Please be aware that if
you vote on the Internet, you may incur costs such as normal telephone and
Internet access charges for which you will be responsible.

   The Internet and telephone voting procedures use a control number. Your
control number appears on the bottom of the enclosed proxy card. The control
number also lets you log on to change your vote or to confirm that your vote
has been properly recorded.

                                      2



   If you want to vote in person at the annual meeting, and you own your Olin
shares through a custodian, broker or other agent, you must obtain a proxy from
that party in their capacity as owner of record for your shares and bring the
proxy to the annual meeting.

How are votes counted?

   If you specifically mark your proxy card (or vote by telephone or Internet)
and indicate how you want your vote to be cast regarding any matter, your
directions will be followed. If you submit your proxy card but do not
specifically mark it with your instructions as to how you want to vote, your
proxy will be voted for the election of the Directors, and in favor of the
ratification of KPMG LLP as independent auditors for 2002.

   If you submit a proxy card marked "abstain" or "withhold" on any item, your
shares will not be voted on the item so marked and your vote will not be
included in determining the number of votes cast for that matter.

Can I change my vote?

   Yes. Even if you submit a proxy card with your voting instructions, you may
revoke or change it in person at the meeting any time before it is exercised or
in a timely manner before the expiration of the voting deadlines by:

..  submittinganother written proxy with a later date,

..  castinga new vote on the Internet or by telephone,

..  sendinga written notice of the change in your voting instructions to the
          Secretary if received  before the annual meeting, or

..  revokingthe grant of a previously submitted proxy and voting in person at
           the annual meeting.

When are the votes due?

   Shares represented by proxies on the enclosed proxy card will be counted in
the vote at the annual meeting if we receive your proxy card by April 24, 2002.
Proxies submitted by the Internet or by telephone will be counted in the vote
only if they are received by 4:00 p.m., Eastern Daylight time on April 24, 2002.

How do I vote my shares held in the Olin Contributing Employee Ownership Plan
or the Arch Chemicals, Inc. Contributing Employee Ownership Plan?

   On February 28, 2002, approximately 7,346,634 shares were held in the Olin
common stock fund of the Olin Corporation Contributing Employee Ownership Plan
and 888,468 shares were held in the Olin common stock fund of the Arch
Chemicals, Inc. Contributing Employee Ownership Plan. We sometimes refer to one
or both of these plans as the CEOP. JPMorgan Chase Bank, as the Trustee of the
CEOP, holds all of those shares. If you are a participant in the CEOP, you may
instruct JPMorgan Chase Bank how to vote shares of common stock credited to you
by indicating your instructions on your proxy card and returning it to us or by
voting on the Internet or telephone. JPMorgan Chase Bank will vote shares of
common stock held in the CEOP for which it does not receive voting
instructions, or which are not credited to participants' accounts, in the same
manner proportionately as it votes the shares of common stock for which they do
receive instructions.

How do I vote my shares held in the Automatic Dividend Reinvestment Plan?

   Mellon Investor Services is our registrar and transfer agent and administers
the Automatic Dividend Reinvestment Plan. If you participate in our Automatic
Dividend Reinvestment Plan, Mellon will vote any shares of common stock that it
holds for you in accordance with your instructions indicated on the proxy card
you return or the vote you make by the Internet or telephone. If you do not
submit a proxy card for your shares of record or vote by Internet or telephone,
Mellon Investor Services will not vote your dividend reinvestment shares.

                                      3



MISCELLANEOUS

Who pays for this proxy solicitation?

   Olin will pay the entire expense of this proxy solicitation.

Who solicits the proxies and what is the cost of this proxy solicitation?

   We have hired Georgeson Shareholder Communications Inc., a proxy
solicitation firm, to assist us with the distribution of proxy materials and
vote solicitation. We will pay Georgeson approximately $11,500 for its services
and will reimburse Georgeson for payments made to brokers and other nominees
for their expenses in forwarding proxy solicitation materials.

How will the proxies be solicited?

   Georgeson will solicit proxies by personal interview, mail, and telephone,
and will request brokerage houses and other custodians, brokers and other
agents to forward proxy solicitation materials to the beneficial owners of Olin
common stock for whom they hold shares. Our Directors, officers and employees
may also solicit proxies by personal interview and telephone.

How can I submit a shareholder proposal at the 2003 annual meeting?

   If you want to present a proposal to be considered for inclusion in the 2003
proxy statement for the 2003 annual meeting, you must deliver the proposal in
writing to the Secretary at Olin Corporation, 501 Merritt 7, PO Box 4500,
Norwalk, CT 06856-4500 no later than November 13, 2002. You must then present
your proposal in person at the 2003 annual meeting.

   If you want to present a proposal for consideration at the 2003 annual
meeting, without including your proposal in the proxy statement, you must
deliver a written notice (containing the information required by Olin's
By-Laws) to the Secretary at Olin Corporation, 501 Merritt 7, PO Box 4500,
Norwalk, CT 06856-4500 no later than January 24, 2003. You must also present
your proposal in person at the 2003 annual meeting.

How can I nominate a Director for election to the Board?

   According to Olin's By-Laws, you may nominate an individual for election to
the Board if you deliver a written notice of the nomination to Olin's Secretary
no later than January 24, 2003. Your notice must include:

     .    your name and address;

     .    the name and address of the person you are nominating;

     .    a statement that you are entitled to vote at the annual meeting and
          intend to appear at the annual meeting in person, or by proxy, to make
          the nomination;

     .    a description of arrangements or understandings between you and
          others, if any, pursuant to which the nomination is to be made;

     .    such other information about the nominee as would be required in a
          proxy statement filed under the Securities and Exchange Commission
          proxy rules; and

     .    the written consent of the nominee to actually serve as a Director, if
          elected.

                           CERTAIN BENEFICIAL OWNERS

Does any single shareholder own or control 5% or more of Olin's common stock?

   We know of no person who beneficially owned more than five percent of our
common stock as of December 31, 2001.

                                      4



                ITEM 1--PROPOSAL FOR THE ELECTION OF DIRECTORS

Who are the individuals nominated by the Board to serve as Directors?

   The Board of Directors is divided into three classes. Each class has a term
of office for three years, and the term of each class ends in a different year.
The Board has nominated three persons, each of whom is listed under "Nominees
for Three-Year Terms Expiring in 2005", for election as Class II Directors to
serve until the 2005 annual meeting of shareholders and until their successors
have been elected. Two of those directors, G. Jackson Ratcliffe, Jr. and
Richard M. Rompala, are currently serving as Class II Directors. The third,
Joseph D. Rupp, was elected by the Board of Directors pursuant to Olin's
By-Laws as a new Class III director on January 1, 2002. Olin's By-Laws require
that any director elected by the Board of Directors shall serve only until the
next election of directors by the shareholders. The Board has nominated Mr.
Rupp for election by the shareholders as a Class II Director. The Board has
also nominated Donald W. Griffin for election as a Class III Director with a
term expiring in 2003. The terms of the other Directors will continue after the
annual meeting as indicated below.

   The Board expects that all of the nominees will be able to serve as
Directors. If any nominee is unable to accept election, a proxy voting in favor
of such nominee will be voted for the election of a substitute nominee selected
by the Board, unless the Board reduces the number of Directors.

                                   CLASS II
                NOMINEES FOR THREE-YEAR TERMS EXPIRING IN 2005

[PHOTO OF GJ
  Ratcliffe]   G. JACKSON RATCLIFFE, JR., 66, is Chairman of Hubbell
               Incorporated, an international manufacturer of electrical and
               electronic products, a position he has held since 1987. From
               1987 to 2001, he also served as President and Chief Executive
               Officer of Hubbell. He holds an AB degree from Duke University
               and a JD degree from the University of Virginia. Mr. Ratcliffe
               is a member of the Board of Directors of Hubbell, Praxair, Inc.,
               Sunoco, Inc. and Barnes Group Inc.; Olin Director since 1990;
               Chair of the Compensation Committee and member of the Directors
               and Corporate Governance Committee and the Executive Committee.

[PHOTO OF RM
  Rompala]     RICHARD M. ROMPALA, 55, is Chairman and Chief Executive Officer
               of The Valspar Corporation, a manufacturer and distributor of
               paints and coatings. Mr. Rompala has held the position of
               Chairman of Valspar since 1998 and Chief Executive Officer of
               Valspar since 1995. From 1994-2001, he also served as President
               of Valspar. Prior to 1994, Mr. Rompala served as Group Vice
               President-Coatings and Resins for two years and Group Vice
               President-Chemicals for five years at PPG Industries, Inc. Mr.
               Rompala holds a BA degree in Chemistry and a BS degree in
               Chemical Engineering from Columbia University and an MBA degree
               from Harvard Business School. He is a Director of The Valspar
               Corporation. Olin Director since 1998; member of the Audit
               Committee, Directors and Corporate Governance Committee and the
               Compensation Committee.

  [PHOTO OF]
  Joseph D.
  Rupp         JOSEPH D. RUPP, 51, is President and Chief Executive Officer of
               Olin, a position he has held since January 2002. Prior to that
               and since March 2001, he was Executive Vice President,
               Operations and was responsible for all Olin business operations
               including Brass, Winchester and Chlor Alkali Products. He joined
               Olin's Brass Division in 1972 and held a number of positions of
               increasing responsibility in the Brass manufacturing and
               engineering organization. In 1985, he was appointed Vice
               President, Manufacturing and Engineering. He was appointed
               President of Olin Brass and a Corporate Vice President in 1996.
               He holds a BS degree in Metallurgy from the University of
               Missouri, Rolla. Olin Director since 2002.

                                      5



                                   CLASS III
                       NOMINEE FOR TERM EXPIRING IN 2003

[PHOTO OF DW
  Griffin]     DONALD W. GRIFFIN, 65, is Chairman of Olin, a position he has
               held since 1996. Until January 1, 2002 he also served as Olin's
               President and Chief Executive Officer. He joined Olin in 1961
               and from 1963 served in a variety of Brass Division marketing
               positions, including Director of international business
               development and vice president, marketing. In 1983, he was
               elected a corporate Vice President and President of the Brass
               Group. In 1985, he was named President of the Winchester Group;
               in 1986, President of the Defense Systems Group; in 1987,
               Executive Vice President; in 1993, Vice Chairman-Operations; in
               1994, President and Chief Operating Officer; in January 1996,
               Chief Executive Officer; and in April 1996, Chairman. He is a
               graduate of the University of Evansville, Evansville, IN and
               completed the Graduate School for Sales and Marketing Managers
               at Syracuse University, Syracuse, NY. Mr. Griffin is a Director
               of Eastman Chemical and Barnes Group Inc. He is also a Director
               of the Sporting Arms and Ammunition Manufacturers Institute, the
               Wildlife Management Institute and the National Shooting Sports
               Foundation. He is on the Board of Trustees of the Buffalo Bill
               Historical Center and the University of Evansville. He is a life
               member of the Navy League of the United States and the Surface
               Navy Association. Olin Director since 1990; Chair of the
               Executive Committee.

   The Board recommends that you vote FOR the election of Mr. Ratcliffe, Mr.
Rompala and Mr. Rupp as Class II Directors, and for the election of Mr. Griffin
as a Class III Director.

How many votes are required to elect a Director?

   A nominee will be elected as a Director if a plurality of the votes cast in
the election are in favor of the nominee. Abstentions and shares held in street
name that are not voted in the election of Directors will not be included in
determining the number of votes cast.

                                      6



Who are the other remaining Directors and when are their terms scheduled to
expire?

   The terms of the following Directors will continue after the 2002 annual
meeting, as indicated below.
                                   CLASS III
                   DIRECTORS WHOSE TERMS CONTINUE UNTIL 2003

[PHOTO OF WW
  Higgins]     WILLIAM W. HIGGINS, 66, retired as a Senior Vice President of
               The Chase Manhattan Bank, N.A. and a senior credit executive of
               its Institutional Bank in December 1990. He joined the bank in
               1959 after receiving a BA degree from Amherst College and an MBA
               degree from Harvard Business School. He was appointed Assistant
               Treasurer in 1962, Second Vice President in 1965 and Vice
               President in 1968. He was appointed a Senior Vice President and
               a Credit Policy Executive in 1983. From 1979 to 1983, he served
               as Deputy Sector Credit Executive of the Corporate Industries
               Sector. Prior to that, he was Group Credit Officer of the
               Corporate Banking Department and before that District Executive
               of the Petroleum Division of the same Department. He is a
               Director and former Chairman of the Greenwich Emergency Medical
               Service, Greenwich, CT. He is past President of the Belle Haven
               Landowners Association in Greenwich, a former member of the
               Representative Town Meeting in Greenwich, and a former trustee
               of the Canterbury School in New Milford, Connecticut. He is a
               Director of The Greenwich Bank & Trust Company. Olin Director
               since 1964; Chair of the Audit Committee and member of the
               Directors and Corporate Governance Committee and the Executive
               Committee.

[PHOTO OF SF
  Page]        STEPHEN F. PAGE, 62, is Executive Vice President of United
               Technologies Corporation (UTC) and President and Chief Executive
               Officer of Otis Elevator Company, a subsidiary of UTC. He has
               held these positions since 1993 and 1997 respectively. He served
               as Chief Financial Officer of UTC from 1993 until 1997. Before
               joining UTC, Mr. Page had a 20-year career with Black & Decker
               Corporation, rising to Executive Vice President and Chief
               Financial Officer. He joined Black & Decker following its
               acquisition of McCulloch Corporation, where he served as General
               Counsel. Previously, he was a principal of the public accounting
               firm now known as Deloitte & Touche. Mr. Page earned business
               and law degrees from Loyola Marymount University in Los Angeles,
               California. He is a certified public accountant and a member of
               the American Bar Association. Mr. Page is a regent of Loyola
               Marymount University, where he is also a member of the National
               Graduate Committee. He also serves as chairman of the Board of
               INROADS for Greater Hartford (CT), and is a member of the
               National Advisory Board of the Kennedy Krieger Institute for
               Handicapped Children. He is a Director of Liberty Mutual Holding
               Company Inc. and formerly served as a Director for Loctite
               Corporation (NYSE) and Augat Inc. (NYSE). Olin Director since
               2000; member of the Audit Committee and the Directors and
               Corporate Governance Committee.

                                      7



                                    CLASS I
                   DIRECTORS WHOSE TERMS CONTINUE UNTIL 2004

[PHOTO OF RW
  Larrimore]   RANDALL W. LARRIMORE, 54, is President and Chief Executive
               Officer of United Stationers Inc., a wholesale distributor of
               office products, a position he has held since 1997. From 1988
               until 1997, he was President and Chief Executive Officer of
               MasterBrand Industries, Inc., a subsidiary of Fortune Brands,
               Inc. He holds a BA degree from Swarthmore College and an MBA
               degree from the Harvard Business School. He is Chairman of the
               Executive Committee of the Office Products Council of the City
               of Hope and a member of the Board of Directors of United
               Stationers and Evanston Northwestern Healthcare. He is also a
               Director of Students In Free Enterprise (S.I.F.E.) and a trustee
               of Lake Forest Academy. Olin Director since 1998; Chair of the
               Directors and Corporate Governance Committee and member of the
               Compensation Committee and the Executive Committee.

[PHOTO OF AW
  Ruggiero]    ANTHONY W. RUGGIERO, 60, is Executive Vice President and Chief
               Financial Officer of Olin, a position he has held since January
               1999. He joined Olin in 1995 as Senior Vice President and Chief
               Financial Officer. Mr. Ruggiero served as Senior Vice President
               and Chief Financial Officer of the Readers Digest Association,
               Inc. from 1990 to 1995. He joined Squibb Corporation in 1969 and
               served as Senior Vice President and Chief Financial Officer and
               a Director from 1983 to 1990. He holds a BS degree from Fordham
               University and an MBA degree from the Columbia Business School.
               He is a member of the CFO Advisory Council of the Financial
               Executives Institute, a Director of Carlisle Companies
               Incorporated and a former Director and Audit Committee Chair of
               Primex Technologies, Inc. Olin Director since 1999.

                                      8



            ADDITIONAL INFORMATION REGARDING THE BOARD OF DIRECTORS

How many meetings did Board members attend?

   During 2001, the Board held six meetings. Each of the current Directors
attended 100% of the meetings of the Board and committees of the Board on which
they served.

What are the committees of the Board?

   The Audit Committee, which held five meetings during 2001, advises the Board
on internal and external audit matters affecting us. The audit committee:

     .    recommends the appointment of our independent auditors, reviews with
          such auditors the scope and results of their examination of our
          financial statements and any investigations and surveys by such
          auditors;

     .    reviews its charter annually and publishes the charter in the annual
          meeting proxy statement in accordance with SEC regulations;

     .    reviews our annual audited financial statements before filing or
          distribution;

     .    reviews with management and our independent auditors, the interim
          financial results and related press releases before issuance to the
          public;

     .    reviews audit plans, activities and reports of our internal and
          regulatory audit departments;

     .    reviews the presentations by management and our independent auditors
          regarding our financial results;

     .    monitors our litigation process including major litigation and other
          legal matters that impact our financial statements or compliance with
          the law;

     .    monitors our insurance and risk management process; and

     .    oversees our ethics and business conduct programs and procedures.

   The Compensation Committee, which held four meetings during 2001, sets
policy, develops and monitors strategies for, and administers the programs that
are used to compensate the chief executive officer and other senior executives.
The compensation committee:

     .    approves the salary plans for senior executives including their total
          direct compensation opportunity, comprised of base salary, annual
          incentive standard and long-term incentive guideline award;

     .    approves the measures, goals, objectives, weighting, payout matrices,
          performance certification and actual payouts for the incentive
          compensation plans;

     .    administers the incentive compensation plans, stock option plans and
          long-term incentive plans;

     .    issues an annual report on executive compensation that appears in this
          proxy statement;

     .    approves executive and change-in-control agreements;

     .    approves and adopts new tax-qualified and non-qualified pension plans,
          approves terminations of tax-qualified and non-qualified pension
          plans, administers deferred compensation arrangements, administers the
          Senior Executive Pension Plan and makes recommendations to the Board
          on any other matters pertaining to the pension, 401(k) and other plans
          which the compensation committee deems appropriate; and

     .    advises the Board on the compensation of directors.

                                      9



   The Directors and Corporate Governance Committee, which held four meetings
during 2001, assists the Board in fulfilling its responsibility to our
shareholders relating to the selection and nomination of officers and
Directors. The directors and corporate governance committee:

     .    makes recommendations to the Board regarding the election of the chief
          executive officer;

     .    reviews the nominees for our other officers;

     .    annually evaluates the performance of the chief executive officer;

     .    makes recommendations to the Board regarding the size and composition
          of the Board and the qualifications and experience that might be
          sought in Board nominees;

     .    seeks out and recommends possible candidates for nomination and
          considers recommendations by shareholders, management, employees and
          others for candidates for nomination and renomination as Directors;

     .    assesses whether the qualifications and experience of Board nominees
          meet the current needs of the Board;

     .    reviews plans for management development and succession;

     .    periodically reviews corporate governance trends, issues and best
          practices and makes recommendations to the Board regarding the
          adoption of best practices most appropriate for the governance of the
          affairs of the Board;

     .    reviews and makes recommendations to the Board regarding the
          composition, duties and responsibilities of various Board committees;

     .    reviews and advises the Board on such matters as protection against
          liability and indemnification; and

     .    reports periodically to the Board on the performance of the Board
          itself as a whole.

   The Executive Committee meets as needed in accordance with our By-laws.
Between meetings of the Board, the executive committee may exercise all the
power and authority of the Board (including authority and power over our
financial affairs) except for matters reserved to the full Board by Virginia
law and matters for which the Board gives specific directions. During 2001,
this committee held no meetings.

How are the Directors compensated?

   During 2001, we compensated each non-employee Director on the Board with:

     .    an annual retainer of $30,000, of which $25,000 was paid or credited
          in the form of shares of common stock.

     .    shares of common stock with an aggregate fair market value equal to
          $24,000, rounded to the nearest 100 shares (prorated based on the date
          the Director joined the Board, for those Directors serving less than a
          full year).

     .    a fee of $1,500 for each meeting of the Board and for each meeting of
          a committee of the Board attended by a committee member.

     .    a $5,000 annual fee for committee chairs.

     .    reimbursement for expenses incurred in the performance of their duties
          as Directors.

     .    a 100% matching contribution to an eligible institution for gifts made
          by a Director (50% for gifts made after November 1, 2001) to such
          institution, but the matching gift plan is limited to $5,000 per
          Director per year.

     .    insurance coverage while on Company business under our business travel
          accident insurance policy.

     .    a special one-time fee of $6,000, for significant succession planning
          work outside the normal director duties during 2001.

                                      10



   Directors may elect to receive common stock instead of cash for any portion
of their cash compensation and to defer any stock or cash payments. Deferred
cash is credited with interest quarterly and deferred shares are credited with
dividend equivalents. Deferred shares are paid out in shares of common stock,
or at the Director's election, in cash. If there is a "Change in Control" as
defined in the 1997 Stock Plan for Non-Employee Directors, (what we refer to as
the Directors Plan) the balance of any deferred accounts is paid to the
Directors.

   The Directors' Plan also holds, as ''phantom'' shares, the shares of common
stock of Arch Chemicals, Inc. issued to any Director as a dividend distribution
on their shares of Olin common stock held in their Directors' Plan accounts at
the time of the spin-off of Arch Chemicals, Inc. Those Arch Chemicals, Inc.
phantom shares are payable only in cash, unless a Director elects to transfer
the Arch Chemicals, Inc. phantom shares into their Olin common stock accounts.

   Directors who are also employees of Olin do not receive any extra
compensation for their services as Directors.

                                      11



                 SECURITY OWNERSHIP OF DIRECTORS AND OFFICERS

How much stock is beneficially owned by each Director and nominee for Director
and by the individuals named in the Summary Compensation Table?

   This table shows how many shares of our common stock certain persons
beneficially owned on January 15, 2002. Those persons include each Director and
Director nominee, each individual named in the Summary Compensation Table on
page 17, and by all current Directors and executive officers as a group. A
person has "beneficial ownership" of shares if the person has voting or
investment power over the shares or the right to acquire such power within 60
days. "Investment power" means the power to direct the sale or other
disposition of the shares. Each person has sole voting and investment power
over the number of shares listed, except as noted in the following table.



                                                                         No. of Shares Percent of
                                                                         Beneficially    Common
                        Name of Beneficial Owner                           Owned(a)     Stock(b)
                        ------------------------                         ------------- ----------
                                                                                 
Donald W. Griffin(c)....................................................     789,201      1.8
William W. Higgins(d)...................................................     228,686       --
Randall W. Larrimore....................................................      17,106       --
Stephen F. Page.........................................................       8,853       --
G. Jackson Ratcliffe, Jr................................................      25,316       --
Richard M. Rompala......................................................      17,217       --
Joseph D. Rupp..........................................................     185,737       --
Anthony W. Ruggiero.....................................................     318,074       --
Thomas M. Gura..........................................................     143,322       --
Peter C. Kosche(c, e)...................................................     222,223       --
Directors and executive officers as a group, including those named above
  (15) persons)(c, d, e)................................................   2,425,415      5.4

--------
(a)Includes shares credited under the CEOP on January 15, 2002, shares of
   common stock credited to deferred accounts under the Directors Plan, and
   shares that may be acquired within 60 days (by March 15, 2002) through the
   exercise of stock options as follows:



                                                              Number of Shares     Number of Shares
                                                              Held in Director    Subject to Options
                            Name                             Deferred Accounts* Exercisable in 60 days
                            ----                             ------------------ ----------------------
                                                                          
Mr. Griffin.................................................           --               678,550
Mr. Higgins.................................................       21,428                    --
Mr. Larrimore...............................................       16,606                    --
Mr. Page....................................................        6,853                    --
Mr. Ratcliffe...............................................       23,316                    --
Mr. Rompala.................................................       16,717                    --
Mr. Rupp....................................................           --               143,413
Mr. Ruggiero................................................           --               263,793
Mr. Gura....................................................           --               110,937
Mr. Kosche..................................................           --               172,415
Directors and executive officers as a group, including those
  named above, (15 persons).................................       84,920             1,793,718

--------
*  Such shares have no voting rights
(b)Unless otherwise indicated, beneficial ownership does not exceed 1% of the
   outstanding shares of common stock.
(c)Includes 24,665 shares held by a charitable foundation for which Mr. Griffin
   and Mr. Kosche, as individual trustees, share voting and investment power
   with Wachovia Bank, N. A. Mr. Griffin and Mr. Kosche disclaim beneficial
   ownership of such shares.

                                      12



(d)Includes 84,220 shares held in two trusts of which his spouse is beneficiary
   and co-trustee; and 42,300 shares held in three trusts of which Mr. Higgins
   is co-trustee and his children are beneficiaries; does not include 128,010
   shares held in three trusts, in which his spouse has an interest. Mr.
   Higgins disclaims beneficial ownership of all such shares.
(e)Includes 838 shares held by Mr. Kosche's daughter.

Section 16(a) Beneficial Ownership Reporting Compliance

   Section 16(a) of the Securities Exchange Act of 1934 requires our officers
and Directors, and persons who own more than ten percent of our common stock,
to file reports of ownership and changes in ownership with the Securities and
Exchange Commission, and these persons must furnish us with copies of the forms
they file. Based solely on our review of the copies of these forms furnished to
us and on written representations, we believe that our officers, Directors and
ten-percent beneficial owners complied with all Section 16(a) filing
requirements.

                                      13



                            EXECUTIVE COMPENSATION

    Report of the Compensation Committee on Executive Compensation for 2001

Compensation Philosophy

   Olin designs its executive compensation policies and program based on
specific objectives:

..  attract, motivate and retain the highest quality executives,

..  align executive interests with those of the Company's shareholders,

..  provide an incentive to executives to achieve quantifiable financial and
   other strategic  objectives in a manner consistent with the Company's
   values, and

..  unite management as a team, emphasizing group results.

To accomplish these objectives, the Company emphasizes variable compensation,
an emphasis consistent with competitive practice.

Executive Compensation Program as Administered in 2001

   The compensation committee establishes total compensation opportunities (and
the three individual components) for the CEO and other named executive officers
targeted to the median of a group of more than 600 companies that represent
general U.S. industry, referred to as the ''comparator group.''

   Independent executive compensation consultants provide the committee with an
annual assessment of the Company's relative position within this comparator
group. The total target compensation opportunity for each executive includes
the following components:

..  annual base salary

..  annual incentive award opportunity

..  long term incentive award

Once the committee determines the total targeted compensation opportunity for
the CEO and the other named executive officers, the committee determines the
appropriate mix of these three components, again with the advice of outside
executive compensation consultants, using the competitive analysis.

   The Company implemented the Economic Value Added (EVA/(R)/) business
management system beginning in 1996 and continued to use this measurement
system in 2001, as the primary basis for the annual incentive plan discussed
below./(1)/ EVA is a method of measuring a company's financial performance by
taking its operating profit after taxes and subtracting a charge for the
capital employed to create the profit. EVA will be positive when a company's
return on capital exceeds its cost of capital.

Base Salary

   Effective January 1, 2001, the CEO's base salary was increased to $760,000,
3.4% over the 2000 level. Factors utilized by the committee in determining the
CEO's 2001 salary included analyses of the comparator group and the scope of
his responsibilities. The CEO's base salary was above the median of the
comparator group in 2001.

   The compensation committee used the same methodology to determine base
salary adjustments for the other four named executive officers.
--------
/(1)/ EVA is a registered trademark of Stern Stewart & Company.

                                      14



Annual Incentive Award

   Olin makes incentive awards based on two elements: (1) Olin's EVA
performance and (2) performance against personal and team objectives. The CEO's
total award was determined using a weighting of 75% on EVA performance and 25%
on performance against personal and team objectives. For 2001, the EVA
performance element compares Olin's actual EVA performance against a
predetermined target. EVA performance was below the target for 2001.

   The Company maintains a "bonus bank" account for each individual
participating in the award plan. We pay a predetermined portion of the annual
EVA performance award, if any, (plus a predetermined portion of the bonus bank
balance, if the bank balance is positive) in a given year. For 2001, the
predetermined payout percent was 33% for the executive officers. This banking
feature imparts a longer term component to the plan, serves to smooth out the
payouts through economic cycles and provides a retention element. The bank
balance, if any, is paid upon retirement, death or disability and may be paid
upon termination of employment in certain other events.

   With performance below target, bank balances may become negative, in which
case, they must be offset and therefore will reduce future awards. If bonus
bank balances carried over from the prior year are negative, an executive
receives the predetermined payout percent of the declared EVA award for the
year in question. The portion of the declared award not paid to the executive
is credited against the existing negative or positive bank balance to determine
the new ending bank balance. This positive or negative balance is held in the
bank. If the balance is positive, it will be available for payout over
subsequent years if EVA performance is sustained but it remains at risk until
it is paid out.

   The discretionary portion of the award is determined by the compensation
committee and is not added to the bonus bank, but is paid out in full for the
year earned.

   The CEO's 2001 incentive payout was $150,000, which represents his targeted
discretionary award for performance against personal and team objectives. He
received no payout for EVA performance. This compares to a total annual
incentive payout in 2000 of $437,842, made up of a $292,842 payout for EVA
performance and an award of $145,000 for performance against personal and team
objectives. His ending 2001 EVA performance-related bank balance is a negative
$284,558, compared to a positive balance of $322,942 in 2000.

   The actual awards for the Executive Vice President, Operations, the
Executive Vice President & Chief Financial Officer and the Senior Vice
President, Corporate Affairs, were determined in a similar fashion, with 75%
based on the Company's EVA performance and 25% based on performance toward
their personal and team objectives. The award for the other named executive
officer, a Division President, was based on a combination of the Company's EVA
and his Divisions' EVA performance (75% weighting) and his personal and team
objectives (25% weighting).

Long Term Incentive Award

   The compensation committee determined the long term incentive award
opportunity for each named executive officer in early 2001, based on the
competitive analysis described above. Under the 2001 long term incentive plan,
stock options represent one-half of the aggregate value of the long term
incentive award opportunity, and performance share awards make up the other
half.

   In 2001, Olin made changes in the method used to determine the grant size
for stock options. The sum of all of the option grants determines the aggregate
pool of options. This pool increases or decreases depending on Olin's trailing
three-year total shareholder return. Total shareholder return, or TSR,
represents the increase in the fair market value of Olin common stock over the
relevant period,

                                      15



including reinvestment of dividends, as calculated for the Performance Graph on
page 21. The option grant pool increases by 25% when Olin's TSR falls within
the top third relative to the TSR for companies in the S&P MidCap 400. The
option grant pool shrinks by 25% when Olin's TSR falls within the bottom third
relative to the TSR for companies in the S&P MidCap 400. Olin reduced its 2001
stock option grant pool by 25%, because Olin's trailing three-year TSR fell in
the bottom third of the companies in the S&P MidCap 400.

   The CEO and other named executive officers received stock option grants in
2001. The option price was set at the fair market value of common stock on the
date of the grant, and the options have a ten-year term. The CEO's options vest
on April 1, 2002, and the remaining option grants vest one-third each year
beginning in 2002. We also accelerated the vesting of Mr. Griffin's stock
options for 66,640 shares from the originally scheduled vesting date of January
27, 2003 to April 30, 2002. This modification did not result in any charge to
our earnings, as the exercise price for the options of $18.97 per share is
above the market price for our common stock.

   Individual standard option grant sizes are fixed by competitive analyses.
Actual grants made to individuals may be increased or decreased by up to 25% by
this committee (or the CEO for non-officers). The total of all adjusted grants
may not exceed the aggregate pool of available options for the year.

   The other half of the individual long term incentive requirement takes the
form of performance shares, with the number of performance shares based on the
competitive analysis and the price of Olin common stock at the time of the
grant. At the end of a three-year performance cycle, participants receive a
performance share award denominated in shares of Olin common stock, paid half
in shares of Olin common stock and half in cash, based on Olin's average annual
return on capital in relation to the average annual return on capital among the
S&P MidCap 400 companies. Return on capital, or ROC, means Olin's consolidated
net income, plus after-tax interest expense and the after-tax effect of any
special charge or gain, and any cumulative effect of a change in accounting,
divided by Olin's average consolidated total assets less total non-interest
bearing liabilities. The award may increase by as much as 50% if Olin's average
annual ROC falls in the top 20% of the S&P MidCap 400 performance and may fall
to 25% if Olin's performance drops to the bottom 20% of the S&P MidCap 400
performance. The CEO and other named executive officers received grants of
performance shares in 2001. The terms of Mr. Griffin's 2001 performance share
grant were modified to provide him with the benefits of all such performance
shares (rather than a pro rata portion) at such time as shares are issued to
other executive officers in accordance with the terms of the 2001 Performance
Share Program.

   Section 162(m) of the Internal Revenue Code denies Olin a deduction for
compensation paid to a named executive officer in a taxable year, to the extent
his compensation that does not meet the definition of "performance-based
compensation" exceeds $1,000,000. Olin structures the stock options, and
significant portions of the remaining long term incentive and of the annual
incentive, to meet the criteria for performance-based compensation. It is
possible, however, that the portions of these awards that do not qualify as
"performance-based compensation," when combined with salary and other forms of
compensation Olin pays to a named executive officer, may exceed this limitation
in any particular year.

January 31, 2002

                                          G. Jackson Ratcliffe, Jr., Chairman
                                          Randall W. Larrimore
                                          Richard M. Rompala

                                      16



   This table shows information about compensation for the Chief Executive
Officer and the other four most highly compensated executive officers in 1999,
2000 and 2001.

                          Summary Compensation Table



                                                                           Long-Term
                                           Annual Compensation           Compensation
                                      ------------------------------ ---------------------
                                                                       Awards    Payouts
                                                                     ---------- ----------
                                                              Other                           All
         Name and Principal                                  Annual  Securities Long-Term    Other
           Position as of                                    Compen- Underlying Incentive   Compen-
         December 31, 2001            Year  Salary  Bonus(b) sation   Options   Payouts(d) sation(e)
         -----------------            ---- -------- -------- ------- ---------- ---------- ---------
                                                                      
Donald W. Griffin.................... 2001 $760,008 $150,000   (c)     72,750    $      0  $ 99,328
  Chairman of the Board, President &  2000  735,000  437,842   (c)    400,000           0    62,583
  Chief Executive Officer (a)         1999  700,008  287,500   (c)    150,000     248,250    70,801

Joseph D. Rupp....................... 2001 $390,008 $ 63,837   (c)     15,750    $      0  $ 28,124
  Executive Vice President,           2000  325,008  157,892   (c)     80,000           0    20,252
  Operations (a)                      1999  300,000  103,720   (c)     30,000      77,875    16,814

Anthony W. Ruggiero.................. 2001 $425,004 $ 55,000   (c)     27,750    $      0  $ 31,130
  Executive Vice President and        2000  415,008  158,529   (c)    160,000           0   293,168
  Chief Financial Officer             1999  400,008  150,000   (c)     60,000           0   326,363

Thomas M. Gura....................... 2001 $333,340 $ 42,500   (c)     13,500    $      0  $ 42,908
  Vice President and President,       2000  300,000  180,682   (c)     80,000           0    21,790
  Brass & Winchester Divisions        1999  275,004  193,007   (c)     30,000      77,875    19,154

Peter C. Kosche...................... 2001 $352,008 $ 47,500   (c)     21,000    $      0  $ 27,753
  Senior Vice President,              2000  340,008  135,882   (c)    100,000           0    26,312
  Corporate Affairs                   1999  325,008  118,750   (c)     40,000      51,505    22,791

--------
(a)Effective January 1, 2002, Mr. Rupp became President and Chief Executive
   Officer. Mr. Griffin remains as Chairman of the Board.
(b)1999 numbers include special performance bonuses related to work performed
   in connection with the spin-off of Arch Chemicals in the amounts of $150,000
   for the CEO, $100,000 for the CFO and $75,000 for the Senior Vice President.
   We did not make any bonus payments to Messrs. Griffin, Ruggiero or Kosche
   for the Company's EVA Performance for 1999 and 2001.
(c)We did not pay "Other annual compensation" to any named executive officer
   except for perquisites and other personal benefits, which for each executive
   officer did not exceed the lesser of $50,000 or 10% of such individual's
   salary plus bonus.
(d)As required by Securities and Exchange Commission rules, we report LTIP
   awards in the year paid rather than in the year earned, because by their
   nature they do not reflect performance in one particular year and often are
   not fully determinable until paid. LTIP payouts in 1999 included retention
   units for 1989-1992 which had a six-year normal retention period which
   accelerated to payout in 1999 prior to the spin-off of Arch Chemicals.
(e)Amounts reported in this column for 2001 are comprised of the following
   items:



                                                                  Value of Split-
                    Exercise of                                       Dollar
                    Arch Stock  CEOP   Supplemental   Term Life   Life Insurance
                    Options (1) Match    CEOP (2)   Insurance (3)  Premiums (4)
                    ----------- ------ ------------ ------------- ---------------
                                                   
Donald W. Griffin..   $40,980   $5,138   $17,813       $1,390         $34,007
Joseph D. Rupp.....     8,055    5,175     6,675        1,390           6,829
Anthony W. Ruggiero         0    4,575     8,325        1,390          16,840
Thomas M. Gura.....    21,845    5,188     4,963        1,390           9,522
Peter C. Kosche....     4,478    5,175     5,535        1,390          11,175

--------
(1)Olin employees may exercise their options for shares of Arch Chemicals, Inc.
   common stock (issued in the 1999 spin-off of Arch Chemicals) for either a
   cash payment or for Arch Chemicals common stock. Olin pays the difference
   between the option exercise price and the fair market value of Arch
   Chemicals common stock at the time of exercise to the employee if he or she
   elects to take cash, or to Arch, which then issues the appropriate number of
   shares to the employee, if the employee elects to take stock.
(2)Under the Supplemental CEOP, CEOP participants whose contributions are
   limited under certain IRS regulations, may make tax deferred contributions
   as would otherwise be permitted in the CEOP. We match Supplemental CEOP
   contributions, as we would under the CEOP. The amounts of our matching
   contributions made on behalf of the executives are shown.
(3)The key executive life insurance program offers executives the choice
   between additional life insurance or monthly income benefits for their
   spouse and children, if they die while working for Olin. We fund these
   benefits through life insurance and the premiums we paid are shown.
(4)Represents the total amount of the premiums we paid in 2001 for life
   insurance and to fund the retiree death benefits.

                                      17



                              Stock Option Plans

   We grant to key employees, selected by the compensation committee, options
to purchase shares of common stock. The option price must be at least the fair
market value of the common stock on the date of the grant and the options may
not be exercised later than ten years from such date. Instead of requiring an
optionee to pay cash, the compensation committee may permit an optionee to pay
the exercise price of the options with common stock, valued at the market price
on the date of exercise. Except for anti-dilution adjustments, options do not
provide for repricing or other adjustments to the exercise price.

   This table provides information about stock options we granted in 2001 to
the individuals named in the Summary Compensation Table on page 17.

                   Option/SAR Grants of Common Stock in 2001



                                               Individual Grants
                    -----------------------------------------------------------------------
                                                              Potential Realizable Value at
                                                                    Assumed Rates of
                                                                Stock Price Appreciation
                                                                  for Option Term(c,d)
-                                                             -----------------------------
                               % of Total
                    Number of   Options
                    Securities  Granted
                    Underlying   to All
                     Options   Employees  Exercise Expiration
Name                Granted(a)  in 2001   Price(b)    Date         5%             10%
----                ---------- ---------- -------- ---------- ------------  --------------
                                                          
Donald W. Griffin..   72,750      16.1     $18.63    2/7/11   $    852,361  $    2,160,051
Joseph D. Rupp.....   15,750       3.5      18.63    2/7/11        184,532         467,640
Anthony W. Ruggiero   27,750       6.1      18.63    2/7/11        325,128         823,937
Thomas M. Gura.....   13,500       3.0      18.63    2/7/11        158,170         400,834
Peter C. Kosche....   21,000       4.7      18.63    2/7/11        246,042         623,520
All Shareholders...      N/A       N/A        N/A      N/A     508,958,984   1,289,796,906
All Optionees......  451,300     100.0      18.59      (e)       5,276,216      13,370,969

--------
(a)We awarded stock options to the five named individuals effective February 8,
   2001. The options granted to Mr. Griffin become exercisable on April 1,
   2002. The remaining options become exercisable in three equal annual
   increments, beginning on February 8, 2002.
(b)The exercise price of the options is equal to the fair market value of
   common stock on the grant dates (calculated on a weighted average basis).
(c)No gain to the optionees is possible without appreciation in the stock price
   which will benefit all shareholders commensurately. The dollar amounts under
   these columns are the result of calculations at the 5% and 10% assumption
   rates set by the SEC and therefore are not intended to forecast possible
   future appreciation of our stock price or to establish any present value of
   the options.
(d)Realizable values are computed based on the number of options granted in
   2001 and still outstanding at year-end.
(e)The expiration dates of options granted during 2001 are February 7, 2011,
   March 1, 2011, and August 8, 2011.

                                      18



   This table describes options exercised during 2001 and the outstanding
options at the end of 2001 for the individuals named in the Summary
Compensation Table on page 17.

   Aggregated Option Exercises in 2001 and Year-end 2001 Stock Option Values



                                        Number of Securities       Aggregate Value of
                                       Underlying Unexercised   Unexercised, In-the-Money
                                         Options at 12/31/01     Options at 12/31/01(a)
-                                     ------------------------- -------------------------
                     Shares
                    Acquired
                       On     Value
                    Exercise Realized Exercisable Unexercisable Exercisable Unexercisable
Name                  (#)      ($)        (#)          (#)          ($)          ($)
----                -------- -------- ----------- ------------- ----------- -------------
                                                          
Donald W. Griffin..  18,796  115,407    561,870      456,070      84,141       14,500
Joseph D. Rupp.....   3,882   32,434    114,830       92,416      18,605        2,900
Anthony W. Ruggiero       0        0    207,871      181,078      11,600        5,800
Thomas M. Gura.....   3,882   22,323     83,104       90,166       6,193        2,900
Peter C. Kosche....   1,879   13,472    135,412      117,663      20,390        3,867

--------
(a)Value was computed as the difference between the exercise price and the
   $16.14 per share closing price of our common stock on December 31, 2001, as
   reported on the consolidated transaction reporting system relating to New
   York Stock Exchange issues.

   The following table describes performance share awards we made in 2001 to
the individuals named in the Summary Compensation Table on page 17.

             Long-Term Incentive Plan--Awards in Last Fiscal Year



                                                   Estimated Future Payouts under
                                                   Non-Stock Price-Based Plans(a)
  -                                                ------------------------------
                      Number Performance or Other
                        of       Period Until      Threshold     Target  Maximum
  Name                Shares Maturation or Payment    (#)         (#)      (#)
  ----                ------ --------------------- ---------    ------   -------
                                                          
  Donald W. Griffin.. 47,000   December 31, 2003    11,750      47,000   70,500
  Joseph D. Rupp..... 10,000   December 31, 2003     2,500      10,000   15,000
  Anthony W. Ruggiero 18,000   December 31, 2003     4,500      18,000   27,000
  Thomas M. Gura.....  9,000   December 31, 2003     2,250       9,000   13,500
  Peter C. Kosche.... 13,000   December 31, 2003     3,250      13,000   19,500

--------
(a)Actual number of shares paid (payable one-half in stock and one-half in
   cash) ranges between 25% and 150% of target number, based upon our average
   annual return on capital compared to the average annual return on capital of
   the Standard & Poor's MidCap 400 companies over the performance period.

                                      19



   This table summarizes share and exercise price information about our equity
compensation plans as of December 31, 2001. While we are not required to
provide this disclosure to shareholders until 2003, we are including it this
year to enhance shareholder understanding of our equity compensation plans.

                     Equity Compensation Plan Information



                                             (a)                  (b)                    (c)
                                   ----------------------- ----------------- ----------------------------
                                                                                 Number of securities
                                   Number of securities to Weighted-average    remaining available for
                                       be issued upon      exercise price of    future issuance under
                                   exercise of outstanding    outstanding        equity compensation
                                      options, warrants    options, warrants plans (excluding securities
          Plan Category               and rights(1)(2)        and rights     reflected in column (a) (2))
          -------------            ----------------------- ----------------- ----------------------------
                                                                    
Equity compensation plans approved
  by security holders.............        5,636,272(3)          $20.68                2,112,610
Equity compensation plans not
  approved by security holders....             None              N/A                     N/A

--------
(1)Does not include (i) an aggregate of 76,200 shares of restricted stock
   payable over the years 2002, 2003 and 2004, (ii) a maximum of 130,212 of
   performance shares payable in 2004, or (iii) 93,299 shares granted and
   deferred under the Directors Plan.
(2)Number of shares is subject to adjustment for changes in capitalization for
   stock splits and stock dividends and similar events.
(3)Includes options for 924,000 shares with an exercise price of $18.97 per
   share, that are exercisable only upon the earlier of December 27, 2009 (one
   month before the options expire) or the tenth day (in any 30 calendar day
   period) upon which the average of the high and low per share sales prices of
   the common stock as reported on the consolidated transaction system for New
   York Stock Exchange issues is at or above $28.00. The weighted average
   remaining exercise period for the outstanding options listed in the table
   above was 6.25 years at December 31, 2001.

                                      20



                               Performance Graph

   This graph compares the total shareholder return on our common stock, with
the total return on the S&P Midcap 400 and our peer group for the five-year
period from December 31, 1996 through December 31, 2001. The cumulative return
includes reinvestment of dividends.

   Our peer group consists of Georgia Gulf Corporation, Brush Engineered
Materials Inc., Chase Industries Inc., Mueller Industries, Inc. and Wolverine
Tube, Inc. Our Peer Group is weighted in accordance with market capitalization
(closing stock price multiplied by the number of shares outstanding) as of the
beginning of each of the five years covered by the performance graph. We
calculated the weighted return for each year by multiplying (a) the percentage
that each corporation's market capitalization represented of the total market
capitalization for all corporations in our Peer Group for such year by (b) the
total shareholder return for that corporation for such year. Our Peer Group no
longer includes Pioneer Companies, Inc., as Pioneer's previously outstanding
common stock was cancelled in 2001 as part of Pioneer's Chapter 11 bankruptcy
proceedings in the United States (and parallel proceedings in Canada).

                                    [CHART]

                Comparison of Five Year Cumulative Total Return*
               Among Olin Corporation, The S & P Midcap 400 Index
                                And A Peer Group

        OLIN CORPORATION    PEER GROUP      S&P MIDCAP 400
        ----------------    ----------      --------------
12/96        $100             $100              $100
12/97         134              125               132
12/98          83               80               158
12/99          99              118               181
12/00         116               89               212
12/01          89               96               196


*  $100 invested on 12/31/96 in stock or index, including reinvestment of
   dividends. The graph reflects distributions received in connection with the
   spin-off of Primex Technologies, Inc. and Arch Chemicals, Inc. as a
   dividend. Such dividend is assumed to have been reinvested in our common
   stock as of January 7, 1997 and February 9, 1999, respectively.



                               12/96 12/97 12/98 12/99 12/00 12/01
                                           
              ----------------------------------------------------
              OLIN CORPORATION  100   134    83    99   116    89
              PEER GROUP......  100   125    80   118    89    96
              S & P MIDCAP 400  100   132   158   181   212   196


                                      21



                             EXECUTIVE AGREEMENTS

   As of December 31, 2001, Olin had compensation agreements with the executive
officers named in the table on page 17 and five other officers. These
agreements provide, among other things, that the officer will receive a payment
from Olin if the individual is terminated (other than for cause), or the
employee elects to leave Olin under certain circumstances. The payment includes
a lump sum severance payment equal to 12 months' salary plus the greater of:

..  the average incentive compensation award paid by Olin during the three years
   before the termination, or

..  the standard annual incentive compensation award, less any amounts payable
   under existing  disability plans of Olin, instead of other Olin severance
   benefits.

Olin provides pension credit and insurance coverage for twelve months, and in
certain cases, beyond such period. The agreements also provide for outplacement
services.

   If a ''Change in Control'' of Olin occurs, the agreements provide that the
officer will receive a lump sum severance payment equal to three times the
severance payment described above. A "Change in Control" occurs if:

..  Olin ceases to be publicly owned;

..  20% or more of its voting stock is acquired by others (other than an Olin
   employee benefit  plan);

..  the current Directors and their designated successors become a minority of
   the Board over a  two-year period;

..  substantially all of our business is disposed of in a transaction in which
   Olin is not the surviving  corporation; or

..  Olin merges with another company and is the surviving corporation (unless
   Olin shareholders  own more than 50% of the voting stock or other ownership
   interest of the combined company).

   In the event of a "Change in Control" of Olin, these executive agreements
require qualified individuals to continue to work for a period of six months
after an announcement or a contract providing for a potential "Change of
Control," provided that the individual retains substantially the same position
as before the potential "Change in Control." These executive agreements expire
on September 30, 2002, (or, if a ''Change in Control'' occurs before that date,
on the later of September 30, 2002 or three years following the ''Change in
Control''). These executive agreements also provide that any payments made
under any "Change in Control" provision in any compensation or benefit plan of
Olin subject to the "excess parachute payment" tax will be increased so that
the executive will receive the same net payment as if such tax did not apply.

   Certain of Olin's benefit and compensation plans, including its EVA annual
incentive bonus plan, also contain ''Change-in-Control'' provisions.

                                      22



                              RETIREMENT BENEFITS

Qualified Pension Plan for Employees

   We provide fixed retirement benefits through a tax qualified pension plan
and two non-qualified plans described below. The normal retirement age is 65,
but early retirement is available after age 55 with at least 10 years of
service. (If early retirement is before age 62, the employee receives reduced
benefits.) The pension benefits are calculated based on the average cash
compensation per year (salary and bonus shown in the Summary Compensation Table
on page 17) for the highest three years during the ten years before and
including the year in which an employee retires. The normal retirement
allowance is 1.5% of the employee's average compensation multiplied by the
number of years of service, less a percentage of the employee's primary Social
Security benefit based on years of service (not to exceed 50% of such Social
Security benefit).

   When the employee qualifies and elects to retire, the benefits of the
qualified plan will be paid in monthly installments, unless the present value
of the benefit is less than $5,000. The qualified pension plan, called the Olin
Corporation Employees Pension Plan, provides that if within three years
following a "Change in Control" of Olin, any corporate action is taken or
filing made in contemplation of, among other things, a plan termination or
merger, or other transfer of assets or liabilities of the plan, and such
termination, merger or other event thereafter takes place, plan benefits would
automatically increase for affected participants (and retired participants) to
absorb any surplus plan assets.

Non-Qualified Supplemental Employee Pension Plan

   Under this non-qualified supplemental pension plan, we pay a supplemental
pension based on the formula described above on deferred compensation,
including deferred incentive compensation.

   The non-qualified supplemental pension plan also provides additional pension
benefits to highly compensated employees, whose benefits from qualified plans
are limited by the Internal Revenue Code. This plan provides for the payment of
supplemental pension benefits equal to the reduction in the qualified plan
benefit resulting from the IRS limitations.

   The non-qualified supplemental pension plan provides that unless the
executive elects installment payments, the executive will receive benefits
under the plan in a lump sum, provided the lump sum exceeds $100,000.

   In the event of a "Change in Control", we will pay each eligible employee a
lump sum amount sufficient to purchase an annuity which will provide the same
monthly after tax benefit as the employee would have received under the plan
based on benefits accrued as of the date of the Change in Control. The lump sum
payment will be reduced to take into consideration monthly payments provided
under trust arrangements or other annuities we establish or purchase to make
payments under this plan.

Senior Executive Pension Plan

   Our Senior Executive Pension Plan provides additional pension benefits for
senior executives. Under this plan, we pay pension benefits to certain senior
executives when they retire after age 55 (with reduced benefits if they retire
before age 62). The benefits are based on the average cash compensation per
year (salary and bonus shown in the Summary Compensation Table on page 17) for
the highest three years during the ten years including the year in which an
executive retires. The benefits equal 3% of the executive's average
compensation multiplied by the number of years of service in a senior executive
position, reduced by pension benefits that accrued under our qualified and
non-qualified plans for the period of time credited under the Senior Executive
Pension Plan, and

                                      23



further reduced by 50% of employee's primary Social Security benefit. The
maximum benefit payable is 50% of the employee's average compensation reduced
by amounts payable from our qualified and non-qualified plans and certain
adjustments set forth in the plan documents, if applicable. The Senior
Executive Pension Plan also provides benefits to an executive's surviving
spouse equal to 50% of the executive's benefits.

   To receive benefits under the Senior Executive Pension Plan, an executive
must meet the service requirements and other plan provisions regarding
suspension of benefit accruals and cessation of benefits. Even if the benefits
have accrued, the compensation committee may remove a participant from the
Senior Executive Pension Plan for cause.

   The Senior Executive Pension Plan provides that unless the executive elects
installment payments, the executive will receive benefits under the plan in a
lump sum payment upon retirement as long as the lump sum would exceed $100,000.
However, in the event of a "Change in Control," the plan will pay qualified
executives a lump sum amount sufficient to purchase an annuity which will
provide the same after-tax benefit. In addition, the agreements described above
under ''Executive Agreements'' provide that an executive officer who is less
than age 55 at the time of a "Change in Control," will be treated as if he or
she had retired at age 55, and the lump sum payment will be calculated based on
the years of service at the date of a "Change in Control."

   The following table shows the maximum amount of retirement benefits annually
payable under the qualified pension plan, the non-qualified supplemental
pension plan and the senior executive pension plan. These amounts will be
reduced by Social Security benefits and other offsets described above.

                              Pension Plan Table



                                      Years of Service
               --------------------------------------------------------------
  Compensation 10 Years 15 Years 20 Years 25 Years 30 Years 35 Years 40 Years
  ------------ -------- -------- -------- -------- -------- -------- --------
                                                
  $  200,000.. $ 60,000 $ 90,000 $100,000 $100,000 $100,000 $105,000 $120,000
     300,000..   90,000  135,000  150,000  150,000  150,000  157,500  180,000
     400,000..  120,000  180,000  200,000  200,000  200,000  210,000  240,000
     500,000..  150,000  225,000  250,000  250,000  250,000  262,500  300,000
     600,000..  180,000  270,000  300,000  300,000  300,000  315,000  360,000
     700,000..  210,000  315,000  350,000  350,000  350,000  367,500  420,000
     800,000..  240,000  360,000  400,000  400,000  400,000  420,000  480,000
     900,000..  270,000  405,000  450,000  450,000  450,000  472,500  540,000
   1,000,000..  300,000  450,000  500,000  500,000  500,000  525,000  600,000
   1,100,000..  330,000  495,000  550,000  550,000  550,000  577,500  660,000
   1,200,000..  360,000  540,000  600,000  600,000  600,000  630,000  720,000
   1,300,000..  390,000  585,000  650,000  650,000  650,000  682,500  780,000
   1,400,000..  420,000  630,000  700,000  700,000  700,000  735,000  840,000
   1,500,000..  450,000  675,000  750,000  750,000  750,000  787,500  900,000
   1,600,000..  480,000  720,000  800,000  800,000  800,000  840,000  960,000


   Credited years of service for the named executive officers as of December
31, 2001 are as follows: Mr. Griffin, 40.6 years (20.8 years under the Senior
Plan); Mr. Rupp, 28.9 years (15.4 years under the Senior Plan); Mr. Ruggiero,
6.3 years (6.3 years under the Senior Plan); Mr. Gura, 33.5 years (14.4 years
under the Senior Plan); and Mr. Kosche, 28.8 years (8.6 years under the Senior
Plan).


                                      24



Other

   Under our compensation plans and arrangements, all participants, including
Directors, may defer payment of salaries, Director compensation and incentive
compensation to cash and phantom stock accounts.

                         Report of the Audit Committee

   The audit committee held five meetings during 2001. The meetings were
designed to facilitate and encourage private communication between the audit
committee and the internal auditors and our independent public accountants,
KPMG LLP.

   The audit committee consists of three Directors, all of whom meet the audit
committee member requirements under NYSE listing standards. The audit committee
acts under a written Charter adopted by the Board of Directors in 1997, which
is reviewed annually and was last updated in 2000.

   The audit committee reviewed and discussed the audited financial statements
for fiscal year 2001 with management and the independent auditors.
Specifically, the audit committee has discussed with the independent auditors
the matters required to be discussed by SAS 61 (Codification of Statements on
Auditing Standards, AU Section 380), which include, among other things:

..  methods Olin used to account for significant and unusual transactions;

..  the effect of important accounting policies in controversial or emerging
   areas for which there is  no authoritative guidance;

..  the process management used to formulate sensitive accounting estimates and
   the auditor's  conclusions regarding the reasonableness of those accounting
   estimates; and

..  disagreements, if any, with management over the application of accounting
   principles, the  basis for management's accounting estimates, and the
   disclosures in the financial statements.

   In addition, the audit committee received the written disclosures and a
letter from our independent accountants, KPMG LLP, required by Independence
Standards Board Standard No. 1, INDEPENDENCE DISCUSSIONS WITH AUDIT COMMITTEES.
The audit committee discussed with KPMG the issue of its independence from
Olin. The audit committee also reviewed the fees paid to KPMG during 2001 to
ensure that all of the work performed was compatible with maintaining KPMG's
independence.

   Based on the audit committee's discussion with management and the
independent accountants and the audit committee's review of management and the
report of the independent accountants, the audit committee recommended that the
Board of Directors include the audited consolidated financial statements in
Olin's Annual Report on Form 10-K for the year ended December 31, 2001 filed
with the Securities and Exchange Commission.

February 28, 2002

                                          William W. Higgins, Chairman
                                          Stephen F. Page
                                          Richard M. Rompala

                                      25



        ITEM 2--PROPOSAL TO RATIFY APPOINTMENT OF INDEPENDENT AUDITORS

   KPMG LLP was our independent auditor for 2001. A summary of the fees we paid
to KPMG during 2001 follows:



                     Nature of Service                      Fees (in thousands)
                     -----------------                      -------------------
                                                         
 Audit Fees (including quarterly financial reviews)........       $  675
 Financial Information Systems Design and Implementation...           --
 Other Fees:
    .  Assistance to internal audit........................          217
    .  Benefit plan audits.................................          154
    .  Environmental expense accounting/litigation support.          124
    .  Tax advice and services.............................           63
    .  Debt offering comfort letters.......................           50
    .  Acquisition due diligence...........................           43
    .  All other...........................................            7
                                                                  ------
        Total Fees.........................................       $1,333
                                                                  ======


Who has the Board appointed as independent auditors for 2002?

   The Board has appointed the firm of KPMG LLP as our independent auditors for
the year 2002. The audit committee recommended the appointment of KPMG.

Is a shareholder vote required to approve Olin's independent auditors?

   The law and our By-laws do not require us to submit this matter to the
shareholders at the annual meeting. The Board chose to submit it to the
shareholders to ascertain their views. If shareholders do not ratify their
appointment at the annual meeting, the Board of Directors intends to reconsider
its appointment of KPMG LLP as independent auditors.

Will I have an opportunity to hear from KPMG LLP and ask them questions?

   We expect representatives of KPMG LLP to be present at the annual meeting.
They will have an opportunity to make a statement and to respond to appropriate
questions if they desire to do so.

How many votes are required to approve the appointment of KPMG LLP as
independent auditors for 2002?

   To approve the appointment of KPMG LLP as independent auditors for 2002, the
votes cast in favor of KPMG LLP must exceed the votes cast in opposition to
KPMG LLP. Abstentions and shares held in street name that are not voted will
not be included in determining the number of votes cast.

How does the Board recommend you vote?

   The Board recommends that you vote FOR the ratification of the appointment
of KPMG LLP as our independent auditors for 2002.

                                          By Order of the Board of Directors:

                                          /s/ Stuart Roth
                                          Stuart Roth
                                          Assistant Secretary

Dated: March 12, 2002

                                      26



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