Kodak Pays Execs too much

(March 29, 2003) — Senior executives at Eastman Kodak Co. 
were handsomely rewarded for leading the company to the top 
of the Dow Jones industrial average last year. 

Rochester’s largest employer paid its five top bosses $8.3 million 
in salary and bonuses in 2002, roughly double the prior year. 

Kodak also handed out special awards of restricted stock to keep 
four of the five executives hard at work on State Street. 

All in all, Kodak’s senior management earned $14 million in 
cash and restricted stock in 2002, up 53 percent from $9.2 million 
in 2001. Those figures do not include an estimated value for stock 
options because the identities of the top five executives have 
changed. Stock option awards in general were decreased in 2002 
over the prior year. 

Chairman and Chief Executive Officer Daniel A. Carp led the increases. 
His total compensation was $9.7 million last year, up 6 percent 
from $9.3 million in 2001. 

The 2002 figure was boosted by a cash bonus of $2.3 million, 
up from just $507,500 in the prior year. It also included 
options on 175,000 shares worth an estimated $2.1 million, 
according to a formula widely used by compensation experts. 
The option grant was down from the prior year. 

The value of compensation packages for both Carp and the 
four other top executives depend on the company’s performance. 
The options could ultimately prove worthless if Kodak’s 
stock does not appreciate in value. 

Note: Value of restricted stock and stock options may vary widely depending on 
performance of company. In fact, stock options may eventually prove worthless 
if Kodak shares do not appreciate. 

Here are the 2002 compensation packages paid to other top 
Eastman Kodak Co. executives: 

Robert H. Brust 

Chief financial officer Salary: $635,828 
Bonus: $669,240 
Restricted stock: $424,162 
Other (loan forgiveness): $487,768 
Estimated value of stock options: $506,240 
Total: $2,723,236 

Martin M. Coyne 

President, Photography Group Salary: $719,692 
Bonus: $889,746 
Restricted stock: $291,332 
Other: $20,953 
Estimated value of stock options: $433,920 
Total: $2,355,913 

Michael P. Morley 

Chief administrative officer Salary: $491,154 
Bonus: $514,800 Restricted 
stock: $368,669 
Estimated value of stock options: $421,866 
Total: $1,796,489 

Daniel P. Palumbo 

President, Consumer Imaging Salary: 
$514,154 Bonus: $517,195 
Restricted stock: $365,915 
Estimated value of stock options: $438,741 
Total: $1,836,005 

Can You Say OINK !!!

— Daniel A. Carp’s total compensation fell by more than 50 percent last year.

By Ben Rand 
Staff writer 

(April 5, 2004)

 Daniel A. Carp’s total compensation fell by more than 50 percent 
last year as Eastman Kodak Co. reduced bonuses and instituted an 
overhaul of its pay policy to top executives. 
The chairman and chief executive of Rochester’s largest employer 
received a package worth an estimated $4.4 million in 2003, 
down 54.2 percent from the prior year. Kodak met its goals for
revenue and profit last year but was also the worst-performing 
stock in the Dow Jones Industrial Average. 
Carp’s package is made up of salary, bonus, shares of stock 
and stock options. Kodak gave Carp a slight raise in salary to 
$1.08 million to keep his pay in line with executives at peer companies. 
His bonus of $1.9 million was down 18 percent. 
A significant part of the drop is tied to a change in Kodak’s pay 
policies. The company will attempt to de-emphasize the use of stock 
options for Carp and the company’s most senior executives. Carp 
received options on 72,000 shares worth an estimated $587,760 in 2003. 
A year ago, Kodak gave Carp options on 175,000 shares worth an estimated $2.1 million. 
Attaching a value to stock options is an inexact science. The options 
are tied to a preset price. If the company’s stock doesn’t rise above 
that price within a seven-year period, the options expire and the 
executive receives nothing. 
In place of options, Kodak will offer the executives a chance to 
earn shares of Kodak stock outright by meeting company goals for 
earnings per share over two years. The stock will also have a yearlong 
waiting period before they become property of the executive. 
The pay for Carp covers what is shaping up to be a decisive year in 
Kodak’s history. The company is pursuing a strategy for surviving 
the switch from film to digital imaging. As part of the strategy, 
the company had announced in January that it would eliminate 
12,000 to 15,000 jobs worldwide over three years. 

BRAND@DemocratandChronicle.com

This is so sad.
I REALLY feel sorry for him !

Dave