Kodak 2004 Annual Report Download - page 181

Exhibits
72
2 0 0 5 ฀ N O T I C E ฀ O F ฀ A N N U A L ฀ M E E T I N G ฀ A N D ฀ P R O X Y ฀ S T A T E M E N T
nExhibit฀IV—Corporate฀Governance฀Guidelines
The฀Board฀of฀Directors,฀acting฀on฀the฀recommendation฀of฀its฀Corporate฀Responsibility฀and฀Governance฀Committee,฀has฀developed฀and฀adopted฀these฀Gov-
ernance฀Guidelines.฀They฀establish฀a฀common฀set฀of฀expectations฀to฀assist฀the฀Board฀and฀its฀committees฀in฀fulfilling฀their฀responsibilities฀to฀the฀Company’s฀
shareholders.฀In฀recognition฀of฀the฀continuing฀evolution฀of฀corporate฀governance฀best฀practices,฀this฀is฀a฀working฀document฀that฀will฀be฀periodically฀
reviewed฀and,฀if฀appropriate,฀revised฀by฀the฀Board.
I.฀ROLE฀AND฀RESPONSIBILITIES฀OF฀THE฀BOARD
Board฀Role฀฀The฀role฀of฀the฀Board฀is฀to฀actively฀oversee฀the฀effectiveness฀of฀management’s฀policies฀and฀decisions,฀including฀the฀execution฀of฀its฀strate-
gies,฀towards฀the฀goal฀of฀maximizing฀the฀Company’s฀long-term฀value฀for฀the฀benefit฀of฀its฀shareholders.฀While฀its฀paramount฀duty฀is฀to฀the฀Company’s฀
shareholders,฀the฀Board฀recognizes฀that฀the฀long-term฀interests฀of฀shareholders฀are฀advanced฀by฀responsibly฀addressing,฀as฀appropriate,฀the฀concerns฀of฀
other฀stakeholders฀and฀interested฀parties฀including฀employees,฀customers,฀suppliers,฀government฀officials฀and฀the฀public฀at฀large.
Board฀Responsibilities฀฀In฀addition฀to฀its฀general฀oversight฀of฀management,฀the฀Board฀(either฀directly฀or฀through฀its฀committees)฀also฀performs฀a฀number฀
of฀specific฀functions฀including:
฀฀ •฀Maximize฀Shareholder฀Return฀฀Representing฀the฀interests฀of฀the฀Company’s฀shareholders฀by฀maximizing฀the฀Company’s฀long-term฀value.
฀ •฀Strategic฀Planning฀฀Reviewing฀and฀approving฀management’s฀strategic฀and฀business฀plans,฀and฀monitoring฀performance฀against฀the฀plans.
฀฀ •฀CEO฀Selection฀and฀Succession฀฀Selecting,฀evaluating฀and฀compensating฀the฀CEO฀and฀overseeing฀the฀CEO฀succession฀planning฀process.
฀฀ •฀฀Management฀Compensation฀and฀Development฀฀Providing฀counsel฀and฀oversight฀on฀the฀selection,฀evaluation,฀development฀and฀compensation฀of฀
senior฀management.
฀฀ •฀฀Annual฀Operating฀Plans฀and฀Budgets฀฀Overseeing,฀understanding฀and฀monitoring฀the฀Company’s฀annual฀operating฀plans฀and฀budgets฀prepared฀
by฀management.
฀฀ •฀฀Controls฀฀Reviewing฀and฀assessing฀the฀processes฀and฀policies฀in฀place฀for฀maintaining฀the฀integrity฀of฀the฀Company,฀including฀the฀integrity฀of฀its฀
financial฀statements,฀the฀integrity฀of฀its฀compliance฀with฀law,฀ethics฀and฀the฀Company฀own฀statement฀of฀values,฀and฀the฀integrity฀of฀its฀relationships฀
with฀employees,฀customers฀and฀suppliers.
฀฀ •฀฀Risk฀Management฀฀Reviewing฀and฀assessing฀management’s฀processes฀and฀policies฀to฀assess฀the฀major฀risks฀facing฀the฀Company,฀and฀periodically฀
reviewing฀management’s฀assessment฀of฀these฀major฀risks฀and฀the฀options฀for฀their฀mitigation.
฀฀ •฀฀Board฀Nomination฀and฀Evaluation฀฀Nominating฀Directors฀and฀Committee฀members฀and฀overseeing฀the฀composition,฀structure,฀practices฀and฀
evaluation฀of฀the฀Board฀and฀its฀Committees.
฀฀ •฀฀Transactions฀Outside฀Ordinary฀Course฀of฀Business฀฀Evaluating฀and฀approving฀all฀material฀Company฀transactions฀not฀arising฀in฀the฀ordinary฀
course฀of฀business.
II.฀DIRECTOR฀SELECTION฀AND฀QUALIFICATION฀STANDARDS
Independence฀฀The฀Board฀will฀be฀comprised฀of฀a฀majority฀of฀directors฀who฀qualify฀as฀independent฀directors฀under฀the฀listing฀standards฀of฀the฀NYSE.฀To฀be฀
considered฀independent฀under฀the฀NYSE’s฀rules,฀the฀Board฀must฀determine฀that฀a฀director฀does฀not฀have฀any฀material฀relationship฀with฀the฀Company.฀The฀
Board฀has฀established฀“Director฀Independence฀Standards”฀set฀forth฀in฀Appendix฀A฀to฀assist฀it฀in฀determining฀director฀independence.฀฀
The฀Board,฀with฀assistance฀from฀its฀Corporate฀Responsibility฀and฀Governance฀Committee,฀will฀undertake฀an฀annual฀review฀to฀evaluate฀the฀independence฀
of฀its฀non-employee฀directors.฀In฀advance฀of฀the฀meeting฀at฀which฀this฀review฀occurs,฀each฀non-employee฀director฀will฀be฀asked฀to฀provide฀the฀Board฀with฀
full฀information฀regarding฀the฀director’s฀business฀and฀other฀relationships฀with฀the฀Company฀and฀its฀affiliates฀and฀senior฀management฀and฀their฀affiliates฀to฀
enable฀the฀Board฀to฀evaluate฀the฀director’s฀independence.
Selection฀of฀New฀Directors฀฀The฀entire฀Board฀is฀responsible฀for฀nominating฀members฀for฀election฀to฀the฀Board฀and฀for฀filling฀vacancies฀on฀the฀Board฀that฀
may฀occur฀between฀annual฀meetings฀of฀the฀shareholders.฀The฀Corporate฀Responsibility฀and฀Governance฀Committee฀is฀responsible฀for฀identifying,฀screening฀
and฀recommending฀candidates฀to฀the฀Board฀for฀Board฀membership.฀฀
The฀Corporate฀Responsibility฀and฀Governance฀Committee฀will฀use฀the฀“Director฀Selection฀Process”฀described฀in฀Appendix฀B฀when฀recruiting,฀evaluating฀and฀
selecting฀director฀candidates.฀฀
The฀Company฀is฀committed฀to฀maintaining฀its฀tradition฀of฀inclusion฀and฀diversity฀within฀the฀Board,฀and฀confirms฀that฀its฀policy฀of฀non-discrimination฀based฀
on฀sex,฀race,฀religion฀or฀national฀origin฀applies฀in฀the฀selection฀of฀directors.
Board฀Membership฀Criteria฀฀Nominees฀for฀director฀will฀be฀selected฀on฀the฀basis฀of฀a฀number฀of฀factors,฀including฀the฀nominee’s฀integrity,฀reputation,฀
judgment,฀knowledge,฀experience,฀diversity฀and฀Board฀needs.฀The฀Board฀is฀committed฀to฀a฀diversified฀membership.฀The฀Corporate฀Responsibility฀and฀
Governance฀Committee฀is฀responsible฀for฀assessing฀the฀appropriate฀balance฀of฀skills฀and฀characteristics฀required฀of฀Board฀members.฀The฀Board฀has฀estab-
lished฀“Director฀Qualification฀Standards”฀set฀forth฀in฀Appendix฀C฀to฀assist฀it฀in฀selecting฀Board฀nominees.฀฀
฀