Kodak 2004 Annual Report Download - page 129
Download and view the complete annual report
Please find page 129 of the 2004 Kodak annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.BOARD
20
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
nBoardStructureandCorporateGovernance
INTRODUCTION
EthicalbusinessconductandgoodcorporategovernancearenotnewpracticesatKodak.ThereputationofourCompanyandourbrandhasbeenbuilt
bymorethanacenturyofethicalbusinessconduct.TheCompanyandtheBoardhavelongpracticedgoodcorporategovernanceandbelieveittobea
prerequisitetoprovidingsustained,long-termvaluetoourshareholders.Wecontinuallymonitordevelopmentsintheareaofcorporategovernanceand
leadindevelopingandimplementingbestpractices.ThisisafundamentalgoalofourBoard.
CORPORATEGOVERNANCEGUIDELINES
WefirstadoptedCorporateGovernanceGuidelinesinJuly2001.TheseguidelinesreflecttheprinciplesbywhichtheCompanyoperates.Fromtimetotime,
theBoardreviewsandrevisesourCorporateGovernanceGuidelinesinresponsetoregulatoryrequirementsandevolvingbestpractices.InFebruary2004,
ourBoardrestatedourCorporateGovernanceGuidelinestoreflectchangesintheNYSE’scorporategovernancelistingstandards.Acopyof these restated
CorporateGovernanceGuidelinesisattachedasExhibitIVtothisProxyStatementandpublishedonourwebsiteat www.kodak.com/go/governance.
BUSINESSCONDUCTGUIDEANDDIRECTORS’CODEOFCONDUCT
Allofouremployees,includingtheCEO,theCFO,theController,allotherseniorfinancialofficersandallotherexecutiveofficers,arerequiredtocomply
withourlong-standingcodeofconduct,the“BusinessConductGuide.”TheBusinessConductGuiderequiresouremployeestomaintainthehighest
ethicalstandardsintheconductofcompanybusinesssothattheyandtheCompanyarealwaysabovereproach.Lastyear,ourBoardadoptedaDirectors’
CodeofConduct.BothourBusinessConductGuideandourDirectors’CodeofConductarepublishedonourwebsiteatwww.kodak.com/go/gover-
nance.Wewillpostonthiswebsiteanyamendmentsto,orwaiversof,theBusinessConductGuideorDirectors’CodeofConduct.TheDirectors’Codeof
ConductisalsoattachedasanappendixtoourCorporateGovernanceGuidelines,whichareattachedasExhibitIVtothisProxyStatement.
BOARDINDEPENDENCE
Foranumberofyears,asubstantialmajorityofourBoardhasbeencomprisedofindependentdirectors.InFebruary2004,theBoardadoptedDirector
IndependenceStandardstoaiditindeterminingwhetheradirectorisindependent.TheseDirectorIndependenceStandardsareincompliancewiththe
directorindependencerequirementsoftheNYSE’scorporategovernancelistingstandards.TheDirectorIndependenceStandardsareattachedasanap-
pendixtoourCompany’sCorporateGovernanceGuidelines,whichareattachedasExhibitIVtothisProxyStatement.
TheBoardhasdeterminedthateachofthefollowingdirectorshasnomaterialrelationshipwiththeCompany(eitherdirectlyorasapartner,shareholder
orofficerofanorganizationthathasarelationshipwiththeCompany)andisindependentundertheCompany’sDirectorIndependenceStandardsand,
therefore,independentwithinthemeaningoftheNYSE’scorporategovernancelistingstandardsandtherulesoftheSEC:RichardS.Braddock,Martha
LayneCollins,TimothyM.Donahue,MichaelJ.Hawley,WilliamH.Hernandez,DurkI.Jager,DebraL.Lee,DelanoE.Lewis,PaulH.O’Neill,HectordeJ.
RuizandLauraD’AndreaTyson.Theremainingtwodirectors,DanielA.Carp,theChairmanoftheBoardandCEO,andAntonioM.Perez,thePresidentand
ChiefOperatingOfficer(COO),areemployeesoftheCompanyand,therefore,arenotindependent.
AUDITCOMMITTEEFINANCIALQUALIFICATIONS
TheBoardhasdeterminedthatallmembersofitsAuditCommitteeareindependentandarefinanciallyliterateasrequiredbytheNYSE,andthatallofits
members(RichardS.Braddock,TimothyM.Donahue,WilliamH.Hernandez,PaulH.O’NeillandHectordeJ.Ruiz)possessthequalificationsofanAudit
CommitteeFinancialExpert,asdefinedbySECrules,andhaveaccountingorrelatedfinancialmanagementexpertise,asrequiredbytheNYSE.