Posted on 08/02/2020 6:25:09 AM PDT by oh8eleven
At the beginning of this week, the Eastman Kodak Company handed its chief executive 1.75 million stock options.
It was the type of compensation decision that generally wouldn’t attract much notice, except for one thing: The day after the stock options were granted, the White House announced that the company would receive a $765 million federal loan to produce ingredients to make pharmaceuticals in the United States.
The news of the deal caused Kodak’s shares to soar more than 1,000 percent. Within 48 hours of the options grants, their value had ballooned, at least on paper, to about $50 million.
(Excerpt) Read more at nytimes.com ...
That’s what I’m curious about. It’s entirely plausible that the board realizing the windfall from his strategy of transitioning the company was the winner and they started the process of rewarding him.
> “I’m probably wrong but I softly suggest that the NY Times could be lying.”
Oh! Oh my …. perish the thought!
The NY Times never lies, NEVER!
Yes, you are right. Stock options are not stock. they are incentives to perform at peak.
If an executive brings a company success, the reward is in converting stock options to stock and holding or selling the stock.
The Slimes is trying to smear and malign what Trump has done with Kodak by tainting its CEO as dishonest.
There has been no trading of the stock. These are just options with only paper value until exercised. The should be a time limit before they can be exercised during which time the stock price could well drop on the markets.
If the Slimes writers had jobs, they might appreciate the fact that executive compensation varies, and generally not done on the spur of the moment. IOW, calm the **** down.
Anyone looking at any members of Congress who might have been doing a little insider trading...?
I would add that stock options can also provide incentives for key employees to remain with the company.
For example, the options could include a provision that they can only be exercised in 1/3 increments after 1 year, 2 years, and 3 years.
The Slimes is trying to smear and malign what Trump has done...
Agree 100%
Ain no trade. Executives get bonuses of stock options to make them share the consequences of their errors but share the benefits of their successes. This if Kodak pulls it off is a huge success. These options probably can’t be exercised for a year or more, and the stock price today has little meaning about the stock price then. This is to hold his feet to the fire to produce as several of the prior ventures of the last decade have been crash and burn failures.
True. They have to be approved by the Board of Directors months in advance.
I hope he put the stocks in a Roth...like mitt Romney does.
Yeah? That’s up to the shareholders.
Back around 1999 a friend was a marketing director for a software company who took stock options rather than pay raises. At the time I talked to his wife, she said they were worth over a million dollars.........Not long after that, the tech bubble burst, the company went out of business and the stocks were worthless......He should have taken the raises.
But Hillary said it’s just luck.
Apparently not.
What is increasingly revealed is how our unprecedented generations of good times have fostered and tolerated now unprecedented levels of corruption, decadence, and passive rot.
I don’t know what the future holds for us.
This CEO has probably saved Kodak by putting together and implementing a plan to revitalize Kodak by re purposing it into a Bio Pharma raw materials producer.
He has seemingly gotten contracts and a line of credit from the government to do so. In my world, they call that job performance. On steroids
What "trade" did the CEO make?
It appears to me that the CEO was awarded the stock options by the board.
If Kodak thrives under the new CEOs Bio Pharma business plan, the CEO will do pretty damn good in the next few years.
He will have earned it if he can rapidly ( like in next year or so) help break the supply lock China has developed on Pharma chemicals due to the massive off shoring of bio Pharma chemicals production and repatriate American manufacturing.
Yes and the fact that Lieawatha/Princess Grey Beaver is behind the investigation.
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