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Fri Jul 31, 2020, 06:46 PM

Kodak C.E.O. Got Stock Options Day Before News of Loan Sent Stock Soaring

Source: New York Times

Kodak C.E.O. Got Stock Options Day Before News of Loan Sent Stock Soaring
The stock options suddenly were worth about $50 million -- the latest instance of extraordinary good timing by corporate executives.

By Jesse Drucker and Ellen Gabler
July 31, 2020, 5:55 p.m. ET

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.

The government loan is part of a broader federal effort to increase the country's ability to respond to the coronavirus and future pandemics.

The options grant to Kodak's executive chairman and chief executive officer, Jim Continenza, is the latest example of executives and board members at companies receiving such federal support to benefit from extraordinarily good timing. A number of those companies are involved in the hunt for vaccines and treatments for Covid-19.

Insiders at Vaxart, for example, received stock options shortly before the California biotech company announced in June that its potential coronavirus vaccine was being tested in a program organized by a federal agency, causing its shares to instantly double.

{snip

Around the time that Kodak began talking with the federal government this spring, Kodak insiders began receiving stock options. The pattern was first reported by Non-GAAP Thoughts, a digital newsletter.

On May 20, Kodak handed out 240,000 stock options to board members -- an addition to its usual equity distribution in January.

The May stock options awarded to directors are now worth about $4 million. Those options are eligible to be exercised gradually over the course of this year.

{snip}

Jesse Drucker is an investigative reporter for the Business desk. He previously worked for The Wall Street Journal and Bloomberg News where he won a pair of awards in 2011 for investigative and explanatory reporting from the Society of American Business Editors and Writers for a series on how U.S. multinationals shift profits into tax havens. @JesseDrucker

Ellen Gabler is an investigative reporter for The New York Times. @egabler

https://twitter.com/JesseDrucker

https://twitter.com/egabler

Read more: https://www.nytimes.com/2020/07/31/business/kodak-ceo-stock-options.html



Once again, hat tip, Joe.My.God.

Kodak CEO Got Stock Options Day Before Trump Deal
July 31, 2020

https://www.joemygod.com/2020/07/kodak-ceo-got-stock-options-day-before-trump-deal/

"the latest example of executives and board members at companies receiving such federal support to benefit from extraordinarily good timing."

You don't say.

Maybe I could take a course at a community college or something where I could learn how to do that.

13 replies, 1477 views

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Arrow 13 replies Author Time Post
Reply Kodak C.E.O. Got Stock Options Day Before News of Loan Sent Stock Soaring (Original post)
mahatmakanejeeves Jul 31 OP
rurallib Jul 31 #1
mahatmakanejeeves Jul 31 #3
ananda Jul 31 #2
Traildogbob Jul 31 #8
JudyM Jul 31 #11
Sherman A1 Jul 31 #4
yaesu Jul 31 #5
leftieNanner Jul 31 #6
keithbvadu2 Jul 31 #7
bucolic_frolic Jul 31 #9
Ferrets are Cool Jul 31 #10
Hoyt Jul 31 #12
LittleGirl Aug 1 #13

Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 06:47 PM

1. Lucky Him

amazing how that happens

for the humor impaired

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Response to rurallib (Reply #1)

Fri Jul 31, 2020, 06:52 PM

3. You're just not trying hard enough. NT

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Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 06:51 PM

2. Kickbacks anyone?

Or campaign donations?

Same thing.

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Response to ananda (Reply #2)

Fri Jul 31, 2020, 07:05 PM

8. Martha Stewart

Needs to go on an ass kicking rampage.
Law and Order. Itís as dead as a maskless mouth breathing pizza man that went to a trump rally without any distancing. Looters, the republican kind. Didnít Trump or some GOP asswipe say, when the looting starts, the shooting starts. Thatís a trump policy I support. Certainly what is needed to MAGA.

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Response to ananda (Reply #2)

Fri Jul 31, 2020, 07:43 PM

11. Smells like a pattern, doesn't it?

Add this to the Biden administrationís investigations list.

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Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 06:56 PM

4. Well,

isn't that interesting........

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Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 06:56 PM

5. there is no longer any oversight of the market for deep pockets, its a post 1930's free for all. nt

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Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 06:58 PM

6. Or maybe take Mitt's suggestion

And borrow $20 Thousand Bucks from your parents to start a business. Like Kodak or something. If you send $$ to Trump's campaign, I'm sure he will be able to shovel some BS project your way. And the best part is? You don't need to be qualified to actually DO anything! Bonus!

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Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 07:04 PM

7. Luckeeeeeeeee!

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Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 07:06 PM

9. This is the new Kodak

The old Kodak entered bankruptcy, cancelled the shares and equity of the old owners, then emerged from bankruptcy with new shares. The old owners got nothing.

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Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 07:38 PM

10. Throw his fucking ass in jail.

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Response to mahatmakanejeeves (Original post)

Fri Jul 31, 2020, 08:11 PM

12. If it makes you feel better, he lost $20+ Million in past two days. If he sells

the stock, heíll pay taxes and at much higher rates if he does it in next year or so; assuming Kodak shares remain above $5 or so, we are pretty much guaranteed to get the loan repaid; and weíll be bringing some jobs home from foreign countries.

And, if the deal broke any laws ó and thatís a big ďifĒ since this looks, at least on surface, like a common big tech arrangement that saves a struggling company lots of money if things donít work out this way ó itíll be easy to prosecute.

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Response to mahatmakanejeeves (Original post)

Sat Aug 1, 2020, 09:56 AM

13. This isn't a bug

Itís a feature of criminal behavior of corporations. We need to make it illegal and enforce it.
Whatís it going to take? Sheesh

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