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 ...
Hey NY Slimes!
Bite Me!
You know...you read a story about a company doing some good for America.
Then, the next day there’s an article about the CEO jizzing all over the effort.
Can’t we trust ANYBODY anymore?
Yeah, I think that’s illegal.
At least, Martha Stewart now believes it is.
I’m probably wrong but I softly suggest that the NY Times could be lying.
Got to give them some time to be investigated with their lying stories.
Cause if, indeed, the day before the big Kodak announcement the CEO was offered stock options, and took them, seems absurd.
If that company and CEP are that dumb damn if I want their medicine.
Lots of work effort goes into granting stock options.
The plan would be devised and approved a year (???) before said options are actually granted
O.K. I’ll play Devil’s Advocate:
What a great way to pay the guy!
The money isn’t “stollen” from anyone, but is, in fact, derived from his own work in leadership.
I know that the New York Times are a bunch of Communists, but what about the rest of America?
The decision-making process to grant stock options to company executives is not done in a single day. These decisions are discussed and approved/disapproved in Board meetings by the Board of Directors that usually meet monthly. For the NY Slimes to insinuate all of this was done in one day’s time just before a loan was granted is a smear tactic.
IF the Slimes said the “sky is blue”, one should be hesitant to even begin to consider believing them
I’m not sure about this. Had the CEO himself purchased shares because he had inside knowledge then it would be illegal but he did not. He was awarded options but it doesn’t say he exercised them as yet.
So what is the law on this sort of thing. I refuse to go to the slimes site.
Tis the American way.
Options have to be approved by the board and generally are granted (as a carrot) at the beginning of a plan cycle to incentivize execution.
It is possible these stock options are incentive for this CEO to deliver on this 3/4 billion dollar contract.
I’m not sure I see the problem. The CEO just saved the company and a company town by taking a dying company and making a hard pivot to rebuild the company toward a high tech future.
Definitely the APPEARANCE of insider trading.
You’re more forgiving than I.
It does smell bad, but sometimes you have to go a little deeper to see if its rotten or just horrible coincidental timing.
Remember, Kodak has been a dog stock, trading at a couple of dollars a share, for a long time. The options will have a strike price and a maturity. If Kodak was trading at, say 2 bucks a share, and the options were priced at five bucks a share, and the grant was made six months or a year ago, and came with some restrictions on when they could be cashed ... bad timing.
On the other hand, if the options were granted during the last days of the negotiation, and the CEO sold them during the day of the trading frenzy (when they momentarily hit 60)... one would wonder.
It depends.
The story is only a story because they hate Trump and his efforts to fulfill his promises about bringing manufacturing of critical items back to America. Sometimes con]incidences happen, and if they did something illegal, it still shouldn’t be used to piss on President Trump’s efforts....zip yer fly up.
I have received stock options.
I calculated how many option senior staff have earned
I budgeted for stock options for the future fiscal year budget.
Third parties consultants are retained to advise on total compensation plans.
No company I ever worked for wakes up one day to grant somebody a bag full of stock options the following day.
I have always worked for public companies, not family companies.
I hope you’re right. It’s hard to imagine any C level executive being that stupid.
But then again, these are strange times. I never thought I’d hear people responsible for running a city talk about getting rid of their police departments.
Insider trading involves the purchase or sale based on a tip. The CEO was gifted this option without any money being exchanged. Happens all the time. This is how CEOs are compensated, through stock.
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