Kodak 2007 Annual Report Download - page 167

44
EXCEL Award Earned for 2007
Named Executive Officer Award Earned ($)
Mr. Perez, Chairman & CEO $3,324,750
Mr. Sklarsky, EVP, CFO 900,000
Mr. Faraci, President & COO 1,066,158
Mr. Langley, SVP, former President – GCG 573,500
Ms. Hellyar, EVP, President – FPG 637,980
The Committee determined that all of the Company’s business units and functions positively contributed to the significant cash generation
performance of the Company and made significant contributions to the Company’s performance on baseline metrics. The actual award
levels received by certain of our Named Executive Officers reflect in part the fact that certain business units contributed more to the
Company’s earnings performance relative to their goals.
Ms. Hellyar received an award equal to 210% of her target opportunity based on FPG’s delivery of an EFO rate in excess of 18%
compared to an internal goal of 13 - 16%. Mr. Faraci received an award equal to 202% of his pro-rated target opportunity reflecting
1) CDG’s significant year-over-year improvement in earnings, as well as exceptional digital revenue growth of 8% compared to an internal
goal of 2 - 4%; and 2) his three months of managing the GCG business in addition to managing the CDG business in connection with his
promotion to President and Chief Operating Officer. Mr. Langley received an award equal to 185% of his target opportunity in consideration
of the growth of GCG’s EFO by 3.2%, despite the absorption of a two-point aluminum price increase. This result, while significant, fell short
of the planned growth rate for GCG of 4 - 5%. Mr. Sklarsky received an award equal to 200% of his target opportunity in recognition of his
leadership of the Finance function in the Company’s outstanding Net Cash Generation performance including the outstanding results on
both receivables and payables. The Committee approved an award for Mr. Perez equal to 195% of his target opportunity based on the
Company’s overall performance results. While the Committee may approve an upward adjustment to the Named Executive Officer’s
EXCEL award based on an executive’s leadership excellence and/or performance under the Company’s diversity and inclusion strategy,
no such adjustment occurred in 2007 in light of the overall EXCEL performance and the size of EXCEL awards earned by our Named
Executive Officers. The Committee determined that Mr. Perez’s leadership had been outstanding in 2007 based on a review of his
leadership performance against the Company’s leadership imperatives, which are “Drives to Win,” “Develops Leaders” and “Leads With
Values,” as determined through the CEO evaluation process described on page 40 of this Proxy Statement. The Committee, however, did
not increase Mr. Perez’s EXCEL award in order to be consistent with the principle that an executive should receive the same award
percentage as received by the unit they lead.
For Named Executive Officers who have not met their share ownership requirements as described on page 40 of this Proxy Statement,
any bonus earned over 100% of each Named Executive Officer’s EXCEL target was paid in the form of unrestricted shares of our common
stock.
Individual Bonus Plan
Mr. Langley participated in an individual variable cash bonus plan to provide him a total target cash opportunity level consistent with his
hiring agreement and to ensure that he was compensated for specific performance achievements that were unique to his position. The
goals were based on priorities our CEO identified for Mr. Langley for the performance year, all of which were critical to the Company’s
ongoing transformation activities. The opportunity associated with the individual plan was included in the analysis of Mr. Langley’s
compensation relative to the competitive market analysis.
The performance goals were established by our CEO and approved by the Committee. They focused on the integration of GCG into the
Company’s operating structure as well as financial metrics primarily for the GCG business. The details of Mr. Langley’s bonus plan are
described on page 58 of this Proxy Statement. Based on achievement of his 2007 performance targets, Mr. Langley was awarded a bonus
of $212,250 equal to 70.75% of the target amount payable under the plan.
Long-Term Variable Equity Incentive Compensation
Our Named Executive Officers receive an annual grant of long-term variable equity incentive awards as described further below. In
addition to these awards, Named Executive Officers may receive additional equity awards during the year in recognition of a promotion or
other significant achievement. All equity awards are issued under the 2005 Omnibus Long-Term Compensation Plan.
Purpose
The purposes behind our long-term variable equity incentive programs are to align executive compensation with shareholder interests,
create significant incentives for executive retention, encourage long-term performance by our executives and promote stock ownership.