Kodak 2004 Annual Report Download - page 138
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Board
29
E A S T M A N K OD A K C O M PA N Y
AnnualPayments
Non-employeedirectorsreceive:
•$80,000asaretainer,atleasthalfofwhichmustbetakeninstockordeferredintostockunits;
•1,500stockoptionsthatvestonthefirstanniversaryofthedategranted;and
•1,500restrictedsharesoftheCompany’scommonstockthatvestonthefirstanniversaryofthedategranted.
TheCommitteeChairs,withtheexceptionoftheAuditChair,receiveachairretainerof$10,000peryearfortheirservices,inadditiontotheirannual
retainerasadirector.TheAuditChairreceivesachairretainerof$15,000forhisservices,inadditiontohisannualretainerasadirector.
ThePresidingDirectorreceivesaretainerof$100,000peryearforhisservices,inadditiontohisannualretainerasadirector.
TheemployeedirectorsreceivenoadditionalcompensationforservingontheBoard.
TravelExpenses
TheCompanyreimbursesthedirectorsfortravelexpensesincurredinconnectionwithattendingBoard,Committeeandshareholdermeetingsandother
Company-sponsoredeventsandprovidesCompanytransportationtothedirectors(includinguseofCompanyaircraft)toattendsuchmeetingsandevents.
DirectorOwnershipRequirements
AdirectorisnotpermittedtoexerciseanystockoptionsorsellanyrestrictedsharesgrantedtohimorherbytheCompanyunlessanduntilthedirector
ownssharesofstockintheCompany(eitheroutrightorthroughphantomstockunitsintheDeferredCompensationPlanforDirectors)thathaveavalue
equaltoatleastfivetimesthethenmaximumamountoftheannualretainer,whichmaybetakenincashbythedirector.
DeferredCompensation
Non-employeedirectorsmaydefersomeoralloftheircompensationintoaphantomKodakstockaccountorintoaninterest-bearingaccount.Sevencur-
rentdirectorsdeferredcompensationin2004.Intheeventofachangeincontrol,theamountsinthephantomaccountswillgenerallybepaidinasingle
cashpayment.
LifeInsurance
TheCompanyprovides$100,000ofgrouptermlifeinsurancetoeachnon-employeedirector.Thisdecreasesto$50,000atretirementorage65,which-
everoccurslater.
CharitableAwardProgram
Thisprogram,whichwasclosedtonewparticipantseffectiveJanuary1,1997,providesforacontributionbytheCompanyofupto$1,000,000following
adirector’sdeathtoamaximumoffourcharitableinstitutionsrecommendedbythedirector.Theindividualdirectorsderivenofinancialbenefitsfromthis
program.Itisfundedbyself-insuranceandjointlifeinsurancepoliciespurchasedbytheCompany.Mr.BraddockandGov.Collinscontinuetoparticipatein
theprogram.
PersonalUmbrellaLiabilityInsurance
TheCompanyprovides$5,000,000ofpersonalliabilityinsurancetoeachnon-employeedirector.ThiscoverageterminatesonDecember31oftheyearin
whichthedirectorterminatesserviceontheCompany’sBoard.
TravelAccidentInsurance
TheCompanyprovideseachnon-employeedirectorwith$200,000ofaccidentaldeathand$100,000ofdismembermentinsurancewhiletravelingtoor
attendingBoardorCommitteemeetings.