Kodak 2004 Annual Report Download - page 134

Board
25
E A S T M A N฀ K OD A K ฀ C O M PA N Y
COMMITTEES฀OF฀THE฀BOARD
The฀Board฀has฀the฀five฀committees฀described฀below.฀The฀Board฀has฀determined฀that฀each฀of฀the฀members฀of฀the฀Audit฀Committee฀(Richard฀S.฀Braddock,฀
Timothy฀M.฀Donahue,฀William฀H.฀Hernandez,฀Paul฀H.฀O’Neill฀and฀Hector฀de฀J.฀Ruiz),฀the฀Corporate฀Responsibility฀and฀Governance฀Committee฀(Martha฀Layne฀
Collins,฀Michael฀J.฀Hawley,฀Durk฀I.฀Jager,฀Debra฀L.฀Lee,฀Delano฀E.฀Lewis฀and฀Laura฀D’Andrea฀Tyson),฀the฀Executive฀Compensation฀and฀Development฀Com-
mittee฀(Martha฀Layne฀Collins,฀Timothy฀M.฀Donahue,฀Debra฀L.฀Lee,฀Paul฀H.฀O’Neill฀and฀Hector฀de฀J.฀Ruiz)฀and฀the฀Finance฀Committee฀(Richard฀S.฀Braddock,฀
Michael฀J.฀Hawley,฀William฀H.฀Hernandez,฀Durk฀I.฀Jager,฀Delano฀E.฀Lewis฀and฀Laura฀D’Andrea฀Tyson)฀has฀no฀material฀relationship฀with฀the฀Company฀(either฀
directly฀or฀as฀a฀partner,฀shareholder฀or฀officer฀of฀an฀organization฀that฀has฀a฀relationship฀with฀the฀Company)฀and฀is฀independent฀under฀the฀Company’s฀Direc-
tor฀Independence฀Standards฀and,฀therefore,฀independent฀within฀the฀meaning฀of฀the฀NYSE’s฀corporate฀governance฀listing฀standards฀and,฀in฀the฀case฀of฀the฀
Audit฀Committee,฀the฀rules฀of฀the฀SEC.
In฀addition฀to฀the฀committee฀meetings฀listed฀below,฀it฀is฀the฀practice฀of฀the฀Company฀that฀the฀members฀of฀management฀who฀work฀with฀a฀particular฀com-
mittee฀meet฀with฀the฀chair฀of฀that฀committee฀prior฀to฀each฀committee฀meeting.฀In฀the฀case฀of฀the฀Audit฀Committee,฀and฀from฀time฀to฀time฀the฀Executive฀
Compensation฀and฀Development฀Committee,฀management฀meets฀with฀the฀committee฀chair฀on฀a฀more฀frequent฀basis.
Audit฀Committee — 11฀meetings฀in฀2004฀
The฀Audit฀Committee฀assists฀the฀Board฀in฀overseeing:฀the฀integrity฀of฀the฀Company’s฀financial฀reports;฀the฀Company’s฀compliance฀with฀legal฀and฀regulatory฀
requirements;฀the฀independent฀registered฀public฀accounting฀firm’s฀(independent฀accountants)฀selection,฀qualifications,฀performance฀and฀independence;฀the฀
Company’s฀systems฀of฀disclosure฀controls฀and฀procedures฀and฀internal฀controls฀over฀financial฀reporting;฀and฀the฀performance฀of฀the฀Company’s฀internal฀
auditors.฀A฀detailed฀list฀of฀the฀Committee’s฀functions฀is฀included฀in฀its฀charter,฀which฀can฀be฀accessed฀at฀www.kodak.com/go/governance.฀In฀the฀past฀
year,฀the฀Audit฀Committee:
฀ •฀discussed฀the฀independence฀of฀the฀independent฀accountants;฀
฀ •฀discussed฀the฀quality฀of฀the฀accounting฀principles฀used฀to฀prepare฀the฀Company’s฀financial฀statements;฀
฀ •฀reviewed฀the฀Company’s฀periodic฀financial฀statements;฀
฀ •฀oversaw฀the฀Company’s฀compliance฀with฀requirements฀of฀the฀Sarbanes-Oxley฀Act,฀SEC฀rules฀and฀NYSE฀listing฀requirements;฀
฀ •฀retained฀the฀independent฀accountants;฀
฀ •฀฀reviewed฀and฀approved฀the฀audit฀and฀non-audit฀budgets฀and฀activities฀of฀both฀the฀independent฀accountants฀and฀the฀internal฀audit฀staff฀of฀the฀
Company;฀
฀ •฀received฀and฀analyzed฀reports฀from฀the฀Company’s฀independent฀accountants฀and฀internal฀audit฀staff;฀
฀ •฀฀met฀separately฀and฀privately฀with฀the฀independent฀accountants฀and฀with฀the฀Company’s฀Director,฀Corporate฀Auditing,฀to฀ensure฀that฀the฀scope฀of฀
their฀activities฀had฀not฀been฀restricted฀and฀that฀adequate฀responses฀to฀their฀recommendations฀had฀been฀received;
฀ •฀reviewed฀the฀progress฀of฀the฀Company’s฀internal฀controls฀assessment;
฀ •฀conducted฀and฀reviewed฀the฀results฀of฀a฀Committee฀evaluation;
฀ •฀reviewed฀the฀fees฀and฀activities฀of฀the฀Company’s฀primary฀second฀service฀provider,฀Deloitte฀&฀Touche฀USA฀LLP;฀
฀ •฀reviewed฀the฀results฀of฀the฀peer฀review฀and฀PCAOB฀report฀on฀2003฀limited฀inspection฀of฀the฀independent฀accountants;
฀ •฀reviewed฀and฀approved฀the฀Directors’฀Code฀of฀Conduct฀and฀the฀Company’s฀revised฀Business฀Conduct฀Guide;฀
฀ •฀conducted฀two฀training฀sessions;฀
฀ •฀฀reviewed฀and฀approved฀management’s฀evaluation฀of฀the฀material฀weaknesses฀in฀controls฀surrounding฀accounting฀for฀income฀taxes฀and฀pension฀and฀
other฀post-retirement฀benefits;฀and฀฀
฀ •฀monitored฀the฀Company’s฀legal฀and฀regulatory฀compliance,฀and฀compliance฀with฀the฀Company’s฀Business฀Conduct฀Guide.฀฀฀
Corporate฀Responsibility฀and฀Governance฀Committee — 5฀meetings฀in฀2004฀
The฀Corporate฀Responsibility฀and฀Governance฀Committee฀assists฀the฀Board฀in:฀overseeing฀the฀Company’s฀corporate฀governance฀structure;฀identifying฀
and฀recommending฀individuals฀to฀the฀Board฀for฀nomination฀as฀directors;฀performing฀an฀annual฀review฀of฀the฀Board’s฀performance;฀and฀overseeing฀the฀
Company’s฀activities฀in฀the฀areas฀of฀environmental฀and฀social฀responsibility.฀A฀detailed฀list฀of฀the฀Committee’s฀functions฀is฀included฀in฀its฀charter,฀which฀can฀
be฀accessed฀at฀www.kodak.com/go/governance.฀In฀the฀past฀year,฀the฀Corporate฀Responsibility฀and฀Governance฀Committee:
฀ •฀฀completed฀its฀review฀of฀the฀Board’s฀compensation฀program฀and,฀as฀a฀result,฀recommended฀to฀the฀Board฀revisions฀to฀bring฀the฀program฀in-line฀with฀
market฀levels฀and฀emerging฀best฀practices;฀
฀ •฀recommended฀to฀the฀Board฀the฀adoption฀of฀director฀ownership฀guidelines;฀
฀ •฀recommended฀to฀the฀Board฀a฀process฀for฀annually฀establishing฀a฀Board฀business฀plan;
฀ •฀recommended฀to฀the฀Board฀a฀2005฀Board฀business฀plan;
฀ •฀recommended฀to฀the฀Board฀a฀process฀for฀annually฀establishing฀a฀Board฀work฀plan;฀
฀ •฀completed฀a฀study฀to฀determine฀how฀the฀Board฀can฀more฀effectively฀utilize฀its฀meeting฀time;
฀ •฀met฀with฀the฀Company’s฀Chief฀Diversity฀Officer฀to฀review฀the฀Company’s฀progress฀against฀the฀Diversity฀Advisory฀Panel’s฀2004฀recommendations;