Toner News Mobile Forums Toner News Main Forums MAJOR PAY CUT FOR KODAK's C.E.O.

Date: Wednesday April 6, 2011 08:18:17 am
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    Kodak CEO 2010 Total Compensation Plunges Amid Missed Targets
    NEW YORK –Eastman Kodak Co. said Chief Executive Antonio Perez received total compensation valued at $5.7 million in 2010, less than half of what he earned a year earlier as he missed performance targets.

    Perez’s compensation was hurt by Kodak’s slumping stock, a company freeze on granting stock options in 2010 and the missed performance targets. Perez’s stock rewards fell 72% in 2010 to $1.7 million from $6.1 million. Perez also didn’t receive any option awards in 2010 compared to $1.1 million in the year-earlier period.

    This isn’t the first time Perez failed to meet performance targets. In 2008, he received none of his performance bonus. This year, however, he was eligible for 40% of the total bonus, but after considering shareholder input, the compensation committee halved the award to 20%.

    Perez–who has been CEO since 2005–received an annual salary of $1.1 million in 2010, an 11% increase from a year ago, according to a filing with the Securities and Exchange Commission. The increase is due to pay cuts in 2009 being restored, a spokesman said. Perez’s salary, except for the pay cuts, has remained at $1.1 million since he became CEO in 2005.

    Kodak, which helped popularize consumer photography, has struggled to recast itself in recent years as a digital imaging powerhouse. The Rochester, N.Y., company has largely relied on income from licensing its patents as it shifts away from its declining film business and into new areas like inkjet printers.

    Kodak shares, which hit a two-year low two weeks ago, have snapped back about 20% in recent days largely because of a favorable patent-infringement ruling last week against Apple Inc. (AAPL) and Research In Motion Ltd. (RIMM). Perez has estimated settlements from both companies could total $1 billion.Still, concerns remain about the company’s long-term prospects. Kodak, which forecast another year of losses this year amid continued weakness in its film business, expects to become profitable in 2012.

    Former Chief Financial Officer Fred Sklarsky, who became CFO at Tyco International Ltd. (TYC) in December, received total compensation valued at $536,746 in 2010, which amounted to less than a fifth of what he made in the year-earlier period. Sklarsky spent four years of his career at Kodak before leaving for Tyco.Kodak promoted Antoinette McCorvey, previously director of investor relations, to head its finances last November. McCorvey earned $476,082 in total compensation in 2010.Kodak shares closed Wednesday up 2.1% at $3.47.

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