Consumer Products

Kodak’s Former CEO Gets Double for Nothing

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Source: Eastman Kodak Co.
As a reward for Antonio Perez’s outstanding performance as CEO of Eastman Kodak Co. (NYSE: KODK) last year, he received $6.71 million. Perez was named Kodak’s CEO in 2005 and led the company straight down the tube to a bankruptcy filing in 2012.

Perez received approximately $3.3 million in salary and bonuses at the direction of the bankruptcy court in 2012, but apparently getting Kodak out of the bankruptcy he led it into and back in the public markets is worth another big payday. Fortunately for Kodak shareholders, Perez was shown the door earlier this year.

According to a proxy statement filed earlier this week, Perez will receive $4.46 million in cash based on his $1.15 million salary — about even with his 2012 salary — and a $3.3 million cash bonus. Perez also received $2.25 million worth of restricted stock units when Kodak exited bankruptcy status last September. That is $6.71 million that shareholders cannot withhold but can show their displeasure with by sending the board a message by voting against.

A report at the Democrat & Chronicle notes that Perez and other Kodak executives received the 2013 bonuses based solely on pretax earnings, most of which came from the sale of Kodak’s Personal Imaging and Document Imaging businesses by a predetermined date. The sales did happen, but not by the specified date. The board must have figured that close was good enough.

How long Kodak can last with this type of board leadership is a fair question. Not only does the board overpay, it insists on it.

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Kodak shares traded up 0.2% Thursday, at $30.18 in a post-bankruptcy range of $19.25 to $37.73.