Kodak 2004 Annual Report Download - page 125

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Proposals
16
2 0 0 5 ฀ N O T I C E ฀ O F ฀ A N N U A L ฀ M E E T I N G ฀ A N D ฀ P R O X Y ฀ S T A T E M E N T
Procedure฀For฀Determining฀Awards
Participants฀in฀EXCEL฀are฀assigned฀target฀awards฀for฀the฀year฀based฀on฀a฀percentage฀of฀their฀base฀salaries฀as฀of฀the฀end฀of฀that฀year.฀This฀percentage฀is฀
determined฀by฀the฀participant’s฀wage฀grade.฀For฀2004,฀target฀awards฀ranged฀from฀25%฀of฀base฀salary฀for฀lower-level฀executives฀to฀155%฀of฀base฀salary฀for฀
the฀CEO.
Each฀year฀the฀Compensation฀Committee฀establishes฀a฀performance฀matrix฀for฀the฀year฀based฀on฀two฀of฀the฀Plan’s฀performance฀metrics.฀This฀matrix฀deter-
mines฀the฀percentage฀of฀the฀Plan’s฀target฀corporate฀funding฀pool฀that฀will฀be฀earned฀for฀the฀year฀based฀on฀the฀Company’s฀actual฀performance฀against฀these฀
two฀metrics.฀The฀target฀corporate฀funding฀pool฀is฀the฀aggregate฀of฀all฀participants’฀target฀awards฀for฀the฀year.฀Under฀the฀performance฀matrix,฀the฀corporate฀
funding฀pool฀will฀fund฀at฀100%฀if฀target฀performance฀for฀each฀performance฀metric฀is฀met.
The฀Compensation฀Committee฀may฀use฀its฀discretion฀to฀increase฀or฀decrease฀the฀amount฀of฀the฀corporate฀funding฀pool฀for฀any฀year.฀The฀Compensation฀
Committee฀considers฀a฀number฀of฀baseline฀metrics฀before฀applying฀this฀discretion.฀In฀2004,฀these฀baseline฀metrics฀included฀earnings฀from฀operations,฀days฀
supply฀of฀inventory฀from฀continuing฀operations,฀customer฀satisfaction,฀digital฀revenue฀growth฀and฀execution฀against฀the฀Company’s฀new฀business฀model.฀In฀
addition,฀the฀Compensation฀Committee฀may฀choose฀to฀exercise฀discretion฀to฀recognize฀such฀things฀as฀unanticipated฀economic฀or฀market฀changes,฀extreme฀
currency฀exchange฀effects฀and฀management฀of฀significant฀workforce฀issues.
The฀CEO฀allocates฀the฀corporate฀funding฀pool฀among฀the฀Company’s฀units.฀For฀example,฀each฀business฀unit฀has฀its฀own฀targets฀for฀operational฀perfor-
mance฀for฀the฀year.฀Actual฀performance฀against฀these฀targets฀accounts฀for฀75%฀of฀the฀business฀unit’s฀allocation.฀The฀remaining฀25%฀is฀determined฀by฀
overall฀Company฀performance฀for฀the฀year฀measured฀against฀the฀Company’s฀targets฀for฀the฀year฀based฀on฀the฀two฀EXCEL฀performance฀metrics.
Senior฀management฀of฀each฀staff,฀regional,฀functional฀and฀business฀unit฀allocates฀the฀unit’s฀funds฀to฀its฀participants฀based฀on฀each฀participant’s฀individual฀
performance.฀This฀assessment฀includes฀performance฀against฀pre-established฀individual฀goals,฀leadership฀and฀support฀of฀the฀Company’s฀diversity฀and฀
inclusion฀strategy.
The฀Compensation฀Committee฀determines฀the฀amount฀of฀the฀award฀pool฀that฀is฀allocated฀to฀each฀of฀the฀Company’s฀executive฀officers.฀In฀making฀these฀
determinations,฀the฀Compensation฀Committee฀considers฀the฀same฀factors฀that฀are฀used฀to฀assess฀the฀Plan’s฀other฀participants:฀performance฀against฀pre-
established฀individual฀goals;฀leadership;฀and฀support฀of฀the฀Company’s฀diversity฀and฀inclusion฀strategy.
Awards฀to฀Covered฀Employees
Before฀any฀award฀is฀paid฀for฀a฀performance฀period,฀the฀Compensation฀Committee฀must฀certify฀in฀writing฀that฀the฀performance฀goals฀for฀the฀period฀have฀
been฀met.฀If฀the฀performance฀goals฀are฀satisfied,฀the฀Compensation฀Committee฀determines฀the฀portion฀of฀the฀award฀pool฀that฀is฀to฀be฀allocated฀to฀each฀
“covered฀employee”฀based฀on฀the฀approach฀described฀above.฀฀
Form฀and฀Payment฀of฀Awards
Awards฀earned฀under฀the฀Plan฀for฀a฀given฀year฀are฀paid฀in฀cash,฀generally฀in฀April฀of฀the฀following฀year.฀A฀participant฀may฀defer฀the฀payment฀of฀all฀or฀any฀
part฀of฀his฀or฀her฀award฀into฀the฀Company’s฀deferred฀compensation฀plan,฀i.e.,฀the฀Eastman฀Kodak฀Company฀1982฀Executive฀Deferred฀Compensation฀Plan.
Plan฀Awards
Since฀the฀Plan฀is฀performance฀based,฀the฀awards,฀if฀any,฀that฀will฀be฀allocated฀for฀2005฀performance฀to฀the฀CEO,฀the฀other฀named฀executive฀officers,฀the฀
executive฀officers฀and฀all฀employees฀who฀are฀not฀executive฀officers฀are฀not฀presently฀determinable.฀The฀table฀below,฀however,฀lists฀the฀EXCEL฀awards฀for฀
2004฀that฀were฀allocated฀to฀these฀employees฀and฀groups฀of฀employees.
2004฀EXCEL฀Awards
฀ Name฀and฀Position฀ Dollar฀Amount฀($)
฀ D.฀A.฀Carp,฀Chairman฀&฀CEO฀ 2,172,988
฀ A.฀M.฀Perez,฀President฀&฀COO฀ 1,242,618
฀ R.฀H.฀Brust,฀Exec.฀VP฀&฀CFO฀ 686,384
฀ J.฀T.฀Langley,฀Sr.฀VP฀ 381,332
฀ B.฀V.฀Masson,฀Sr.฀VP฀ 627,785
฀ All฀Executive฀Officers฀ 8,290,022
฀ All฀Other฀Employees฀ 51,056,355