Kodak 2004 Annual Report Download - page 156

Reports
47
E A S T M A N฀ K OD A K ฀ C O M PA N Y
nReport฀of฀the฀Corporate฀Responsibility฀and฀Governance฀Committee
COMMITTEE฀COMPOSITION
The฀Corporate฀Responsibility฀and฀Governance฀Committee฀is฀composed฀of฀six฀directors,฀each฀of฀whom฀meets฀the฀definition฀of฀“independence”฀set฀forth฀in฀
the฀NYSE’s฀corporate฀governance฀listing฀standards.฀During฀2004,฀the฀Committee฀met฀five฀times.฀The฀charter฀of฀the฀Committee฀can฀be฀accessed฀electroni-
cally฀in฀the฀“Corporate฀Governance”฀section฀of฀www.kodak.com/go/governance.
COMMITTEE฀RESPONSIBILITIES
The฀Committee฀is฀responsible฀for:฀i)฀overseeing฀the฀Company’s฀corporate฀governance฀structure;฀ii)฀identifying,฀screening฀and฀recommending฀director฀
candidates฀to฀the฀Board;฀iii)฀administering฀the฀Director฀Selection฀Process;฀iv)฀developing฀the฀Company’s฀Director฀Qualification฀Standards;฀v)฀overseeing฀the฀
annual฀evaluation฀of฀the฀Board฀and฀each฀of฀its฀committees;฀vi)฀overseeing฀and฀reviewing฀the฀Company’s฀Corporate฀Governance฀Guidelines฀and฀Director฀
Independence฀Standards;฀vii)฀assisting฀the฀Board฀in฀its฀determinations฀of฀director฀independence;฀viii)฀recommending฀to฀the฀Board฀the฀compensation฀for฀
directors;฀ix)฀recommending฀committee฀assignments,฀including฀committee฀chairs,฀to฀the฀full฀Board฀for฀approval;฀and฀x)฀overseeing฀the฀Company’s฀activities฀
in฀the฀areas฀of฀environmental฀and฀social฀responsibility,฀diversity฀and฀equal฀employment฀opportunity.฀A฀complete฀description฀of฀the฀Committee’s฀responsi-
bilities฀can฀be฀found฀in฀its฀charter.
BOARD฀BUSINESS฀PLAN
The฀Committee฀continually฀seeks฀ways฀to฀improve฀the฀Board’s฀accountability฀and฀effectiveness.฀Last฀year฀the฀Board฀adopted,฀at฀the฀Committee’s฀recom-
mendation,฀a฀formal฀process฀for฀annually฀establishing฀and฀prioritizing฀the฀Board’s฀goals.฀The฀end฀product฀of฀this฀process฀is฀essentially฀a฀“Board฀business฀
plan.”฀The฀Committee฀believes฀that฀annually฀adopting฀such฀a฀plan฀will฀enhance฀the฀Board’s฀ability฀to฀annually฀measure฀its฀performance,฀improve฀the฀
Board’s฀focus฀on฀the฀Company’s฀long-term฀strategic฀issues฀and฀ensure฀that฀the฀Board’s฀goals฀are฀linked฀to฀the฀Company’s฀strategic฀initiatives.฀฀
Under฀the฀process฀approved฀by฀the฀Board,฀each฀year฀the฀Committee฀will฀submit฀to฀the฀Board฀a฀proposed฀list฀of฀Board฀goals฀for฀the฀following฀year฀along฀
with฀a฀proposed฀list฀of฀performance฀measures฀to฀track฀the฀Board’s฀performance฀against฀these฀goals.฀At฀its฀first฀meeting฀of฀the฀year,฀the฀Board฀will฀finalize฀
its฀goals฀for฀the฀year,฀prioritize฀these฀goals฀and฀define฀the฀performance฀measures฀for฀each฀goal.฀The฀Committee฀is฀responsible฀for฀tracking฀the฀Board’s฀per-
formance฀against฀its฀goals฀and฀routinely฀reporting฀these฀results฀to฀the฀Board.฀Performance฀against฀the฀goals฀will฀also฀be฀assessed฀as฀part฀of฀the฀Board’s฀
annual฀evaluation฀process.
The฀Board’s฀goal-setting฀process฀specifies฀that฀each฀Board฀goal฀must฀be฀specific,฀actionable,฀capable฀of฀measure฀through฀associated฀performance฀mea-
sures,฀linked฀to฀the฀Company’s฀strategic฀initiatives฀and฀fall฀within฀the฀scope฀of฀the฀Board’s฀responsibilities.฀฀
The฀Board,฀with฀the฀Committee’s฀assistance,฀used฀this฀new฀process฀to฀establish฀its฀Board฀business฀plan฀for฀2005.฀The฀plan฀consists฀of฀five฀separate฀goals฀
that฀relate฀to฀the฀following฀Board฀responsibilities:฀strategic฀planning,฀succession฀planning,฀management฀development,฀corporate฀governance฀and฀executive฀
compensation.
MORE฀EFFECTIVE฀UTILIZATION฀OF฀BOARD฀MEETING฀TIME
As฀a฀result฀of฀an฀opportunity฀that฀arose฀from฀the฀Board’s฀2004฀evaluation,฀the฀Committee฀undertook฀a฀study฀in฀the฀fall฀of฀2004฀to฀determine฀how฀the฀Board฀
can฀more฀effectively฀utilize฀its฀meeting฀time.฀During฀the฀course฀of฀this฀effort,฀the฀Committee฀addressed฀the฀following฀topics:฀frequency,฀length฀and฀format฀
of฀Board฀meetings,฀time฀allocation฀at฀Board฀meetings,฀use฀of฀an฀annual฀Board฀work฀plan฀and฀composition฀of฀the฀Board’s฀committees.฀With฀respect฀to฀each฀
of฀these฀topics,฀the฀Committee฀documented฀the฀Board’s฀current฀practice,฀surveyed฀directors฀for฀their฀opinions฀and฀determined฀current฀best฀practices.฀
The฀Committee฀presented฀the฀results฀of฀its฀finding฀to฀the฀full฀Board฀at฀its฀December฀meeting.฀As฀a฀result฀of฀the฀Committee’s฀recommendations,฀the฀Board฀
agreed฀to฀a฀number฀of฀actions฀including฀increasing฀the฀average฀length฀of฀its฀meetings,฀devoting฀more฀time฀at฀its฀meetings฀to฀discussions,฀rather฀than฀
presentations,฀trying฀several฀alternatives฀to฀its฀one-day฀meeting฀format฀and฀adopting฀an฀annual฀Board฀work฀plan.
At฀the฀Board’s฀request,฀the฀Committee฀has฀already฀developed฀a฀Board฀work฀plan฀for฀2005.฀The฀plan,฀which฀is฀in฀a฀calendar฀format,฀shows,฀meeting฀by฀
meeting,฀how฀the฀Board฀and฀each฀of฀its฀Committees฀will฀allocate฀its฀time฀among฀its฀goals,฀major฀strategic฀directions฀and฀core฀responsibilities.฀Other฀topics฀
addressed฀in฀the฀work฀plan฀include฀Board฀education,฀the฀Board’s฀annual฀strategic฀retreat,฀the฀Board’s฀business฀plan,฀the฀action฀plan฀from฀the฀Board’s฀2004฀
evaluation฀and฀the฀Board’s฀access฀to฀the฀Company’s฀high฀potential฀candidates.
DIVERSITY฀INITIATIVES
In฀December฀of฀2003,฀the฀Company’s฀Diversity฀Advisory฀Panel฀met฀with฀the฀Board฀to฀present฀its฀final฀recommendations.฀This฀seven-member,฀blue-ribbon฀
panel฀was฀launched฀in฀2001฀to฀provide฀advice฀on฀the฀Company’s฀comprehensive฀diversity฀strategy฀and฀assess฀future฀diversity฀trends฀and฀the฀potential฀
impact฀on฀Kodak.฀Based฀on฀the฀Panel’s฀final฀recommendations,฀the฀Committee฀recommended฀a฀number฀of฀specific฀measures฀to฀the฀full฀Board฀for฀adop-
tion.฀These฀measures฀were฀approved฀by฀the฀full฀Board฀at฀its฀February฀2004฀meeting.฀In฀late฀2004,฀the฀Committee฀met฀with฀the฀Company’s฀Chief฀Diversity฀
Officer,฀Essie฀L.฀Calhoun,฀to฀assess฀the฀Company’s฀progress฀against฀these฀measures.฀At฀the฀same฀time,฀the฀Committee฀reviewed฀and฀discussed฀with฀Ms.฀
Calhoun฀the฀Company’s฀performance฀against฀its฀2004฀representation฀metrics฀and฀progress฀against฀the฀strategies฀outlined฀in฀its฀Global฀Diversity฀Hoshin฀
Plan.฀