Kodak 2006 Annual Report Download - page 222

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Regular Severance Payments Table(1)
The table below estimates the incremental amounts payable upon a termination of employment by the Company without cause and for an “approved
reason” as if the Named Executive Offi cers’ employment was terminated as of December 31, 2006 using the closing price of our common stock as of
December 29, 2006, the last trading day in 2006.
A. M. F. S. R. H. J. T. P. J. M. J. D. T.
Perez Sklarsky Brust Langley Faraci Hellyar Meek(2)
Cash Severance (3) $ 5,610,000 $ 1,050,000 $ 2,573,120 $ 93,462 $ 842,400 $ 1,587,600 $ 1,620,000
Additional Severance 0 0 0 0 0 680,000 (10) 0
Payment
Individual 0 0 0 0 0 0 1,395,000
Performance Plan
Intrinsic Value of 94,504 0 12,601 14,659 34,409 11,725 0
Stock Options (4)
Restricted Stock (5) 2,838,000 1,290,000 696,600 0 258,000 387,000 0
Leadership Stock (6) 822,375 0 129,645 132,225 132,225 105,780 49,118
2006 EPSP Award (7) 781,256 0 123,163 125,614 125,614 100,491 0
Benefi ts/Perquisites (8) 25,763 11,785 0 0 0 11,785 11,785
Pension (9) 301,209 0 0 0 265,371 0 1,176,662
Total $ 10,473,107 $ 2,351,785 $ 3,535,129 $ 365,960 $ 1,658,019 $ 2,884,381 $ 4,252,565
(1) The values in this table: 1) refl ect incremental payments associated with an involuntary termination without cause with an approved reason; 2)
assume a stock price of $25.80 (except where otherwise noted); and 3) include all outstanding grants through the assumed termination date of
December 31, 2006.
(2) Mr. Meek’s disclosure includes actual payments earned upon his 2006 termination: 1) a cash severance of $1,620,000; 2) a $1,395,000 award,
payable in shares of Kodak common stock on or before March 15, 2008, per his individual bonus and retention plan, described on page 53 of this
Proxy Statement; 3) Leadership Stock that vested in connection with termination with an approved reason, valued at a stock price of $23.78, the
closing price on Mr. Meek’s termination date; and 4) an incremental pension lump-sum payment of $1,176,662.
(3) The cash severance amounts disclosed above were calculated for each Named Executive Offi cer by multiplying the Named Executive’s target
cash compensation by a multiplier unique for each Named Executive Offi cer. Mr. Perez’s cash severance equation is 2 times his target cash
compensation. Mr. Sklarsky’s cash severance equation is 1 times his target cash compensation. Mr. Brust’s cash severance equation is 2 times
his target cash compensation. Mr. Faraci’s cash severance equation is 1 times his target cash compensation. Ms. Hellyar’s cash severance equa-
tion is 2 times her target cash compensation. The amount for Mr. Langley reports the amount he would receive under the Company’s Termination
Allowance Plan because, unlike the other Named Executive Offi cers, he is not eligible for severance benefi ts under his individual agreement with
the Company. The amount equals to 2 weeks target cash compensation for each completed year of service.
(4) The amounts in this row report the intrinsic value of unvested stock options, based on a stock price of $25.80, the closing price of Kodak stock as
of December 29, 2006, that would continue to vest in the event of an involuntary termination for an approved reason.
(5) The amounts in this row report the value of unvested shares of restricted stock that would automatically vest upon a termination for an approved
reason.
(6) The values in this row refl ect 50% of the target allocation for the 2006-2007 Leadership Stock performance cycle, although the actual amount
may range from 0% to 200% based on Company’s performance relative to plan goals and also refl ect a 0% earnout for the 2005-2006 Leader-
ship Stock Award.
(7) The amounts in this row refl ect a 95% payout from the 2006 EPSP.
(8) Messrs. Sklarsky and Meek and Ms. Hellyar would be entitled to $11,785 in perquisites, which include: 1) four months of continued benefi ts,
valued at $2,785; and 2) outplacement benefi ts, valued at $9,000. Mr. Perez would be entitled to $25,763 in perquisites, which include: 1)
four months of continued health and dental benefi ts, valued at $2,763; 2) outplacement benefi ts, valued at $9,000; and 3) two years of fi nancial
counseling benefi ts, valued at $7,000 per year.
(9) The amounts included in this row report the incremental value of pension benefi ts to which the Named Executive Offi cers would have been
entitled. The amounts reported assume that all the Named Executive Offi cers, except Ms. Hellyar, would receive their pension benefi ts in a lump
sum. The amount reported for Ms. Hellyar assumes she would receive her pension in the form of an annuity.