4:24:01 AM PDT - Tuesday, September 22nd, 2020

Kodak Says It Mishandled CEO Stock Grants Ahead of Covid Project  

By Editor - Tue Sep 15, 9:37 pm

(Bloomberg) — Eastman Kodak Co., seeking to address the firestorm of allegations surrounding a Trump administration loan, said it mishandled the process of awarding stock option grants to its chief executive officer before the announcement.A legal review commissioned by Kodak found that the company’s general counsel didn’t properly brief the board on legal risks of providing the grants to Jim Continenza, the CEO and executive chairman, ahead of positive corporate news. He received the grants the day before the Rochester, New York-based company disclosed that it had been awarded $765 million to manufacture pharmaceutical materials as part of a Covid-19 government loan program.“The manner in which the options grants were awarded was sub-optimal in a number of respects,” the lawyers at Akin Gump Strauss Hauer & Feld LLP wrote in the report released Tuesday evening. The lawyers determined that Kodak’s conduct didn’t violate the law, although the situation remains under investigation by U.S. securities regulators and Congress.In a separate statement, Kodak said it agreed to carry out the report’s proposals, which include amending Continenza’s share grants and reconsidering the board’s composition.Kodak, the photography giant of yesteryear, was trading at less than $3 before the surprise move into Covid-19 pharmaceuticals in late July drove the stock price to as high as $60. In the resulting scandal, the federal agency that awarded the loan placed it on hold pending the investigations. Kodak’s stock closed at $6.23 on Tuesday.The company’s report addressed a number of legal quandaries facing Kodak

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Kodak Says It Mishandled CEO Stock Grants Ahead of Covid Project

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