Kodak 2010 Annual Report Download - page 173

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Committee determines to be appropriate.
Generally, whether compensation will be deductible under Section 162(m) will be an important, but not a decisive, factor with respect to the
Committee’s decisions.
OTHER COMPENSATION ELEMENTS
Retirement Plans
The Company offers a tax-qualified defined benefit plan, comprised of a cash balance component and a traditional defined benefit
component (KRIP), and a tax-qualified 401(k) defined contribution plan (SIP), which cover virtually all U.S. employees. In addition to these
tax-qualified retirement plans, the Company provides supplemental non-qualified retirement benefits to our executives, including the
Named Executive Officers, under the Kodak Unfunded Retirement Income Plan (KURIP) and the Kodak Excess Retirement Income Plan
(KERIP). KURIP and KERIP are unfunded retirement plans that are designed to provide our executives with pension benefits that make up
for the Internal Revenue Code’s limitations on allocations and benefits that may be paid under KRIP and SIP. None of our Named
Executive Officers has an accumulated benefit under KERIP. The details of KRIP and KURIP are described under the Pension Benefits
Table on pages 59 – 60 of this Proxy Statement.
The Company believes that our tax-qualified retirement plans and non-qualified supplemental retirement plans effectively serve to attract
and retain employees.
Supplemental Individual Retirement Arrangements
At the time of their hire, the Company entered into individual letter agreements with Messrs. Perez and Faraci to provide additional
retirement benefits beyond those available under our tax-qualified retirement plans and non-qualified supplemental retirement plans. These
agreements provide eligibility for the traditional benefit component of KRIP and KURIP and for additional years of service in calculating
those benefits. Supplemental individual retirement arrangements were necessary to recruit these Named Executive Officers. The benefits
provided to our Named Executive Officers under any individual retirement arrangement are described on page 61 of this Proxy Statement.
Mr. Sklarsky also had a letter agreement with the Company that provided credits to a phantom cash balance account into which he would
vest upon attaining five years of continuous employment (i.e., October 30, 2011). Mr. Sklarsky’s last date of employment with the Company
was November 5, 2010, therefore, this benefit was not paid to him.
Deferred Compensation Plan
The Company has maintained a non-qualified deferred compensation plan for its executives, known as the Eastman Kodak Company 1982
Executive Deferred Compensation Plan (EDCP). In 2009, the Committee froze the receipt of new monies into this plan indefinitely due to
the plan’s administrative costs and low utilization.
Perquisites
The Company provides certain perquisites, which are reviewed periodically, to ensure the personal security of senior executives, to
maximize an executive’s time spent on Company business, or to attract and retain them.
Our executive security program requires our CEO to use Company aircraft for all business travel. Effective January 1, 2011, the Company
placed limitations on Mr. Perez’s non-business use of corporate aircraft such that the Company will provide this perquisite at a maximum
level of $100,000 annually. Mr. Perez is responsible for payment of costs associated with his personal use over this threshold under a
time-sharing agreement. Our Named Executive Officers, other than our CEO, are not permitted to use corporate aircraft for personal travel
without approval from our CEO. This restriction applies to personal travel of these Named Executive Officers as well as the travel of a
spouse when accompanying the Named Executive Officer on business travel.
The Company eliminated financial counseling services and personal umbrella liability insurance for all executives who did not have
coverage on January 1, 2009. The Company also eliminated home security services for all executives with the exception of the CEO.
Named Executive Officers have access to the Company’s consumer products and services.
The compensation attributed to our Named Executive Officers for 2010 for perquisites is included in the Summary Compensation Table on
pages 49 – 51 of this Proxy Statement.