Kodak 2004 Annual Report Download - page 152

Download and view the complete annual report

Please find page 152 of the 2004 Kodak annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 192

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192

Compensation
43
E A S T M A N฀ K OD A K ฀ C O M PA N Y
As฀more฀fully฀described฀beginning฀on฀page฀12,฀under฀the฀Company’s฀new฀2005฀Omnibus฀Long-Term฀Compensation฀Plan,฀upon฀a฀change฀in฀control,฀if฀out-
standing฀stock฀option฀and฀restricted฀stock฀awards฀are฀assumed฀or฀substituted฀by฀the฀surviving฀company,฀as฀determined฀by฀the฀Compensation฀Committee,฀
then฀the฀awards฀will฀not฀immediately฀vest฀or฀be฀exercisable.฀If฀the฀awards฀are฀so฀assumed฀or฀substituted,฀then฀the฀awards฀will฀be฀subject฀to฀accelerated฀
vesting฀and฀exercisability฀upon฀certain฀terminations฀of฀employment฀within฀the฀first฀two฀years฀after฀the฀change฀in฀control.฀Only฀if฀the฀awards฀are฀not฀so฀
assumed฀or฀substituted฀will฀they฀become฀immediately฀vested,฀exercisable฀and฀cashed-out.฀For฀performance฀awards,฀if฀more฀than฀50%฀of฀the฀performance฀
cycle฀has฀elapsed฀when฀a฀change฀in฀control฀occurs,฀the฀award฀will฀vest฀and฀be฀paid฀out฀at฀the฀greater฀of฀target฀performance฀or฀performance฀to฀date.฀If฀
50%฀or฀less฀of฀the฀performance฀cycle฀has฀elapsed฀when฀a฀change฀in฀control฀occurs,฀the฀award฀will฀vest฀and฀be฀paid฀out฀at฀50%฀of฀target฀performance,฀
regardless฀of฀actual฀performance฀to฀date.
DEFERRED฀COMPENSATION
The฀Company฀maintains฀a฀deferred฀compensation฀plan฀for฀its฀executives,฀i.e.,฀the฀Eastman฀Kodak฀Company฀1982฀Executive฀Deferred฀Compensation฀Plan.฀฀
The฀plan฀permits฀the฀Company’s฀executives฀to฀defer฀some฀or฀all฀of฀their฀base฀salary฀and฀short-term฀variable฀pay฀awards.฀Each฀fall,฀the฀Company’s฀execu-
tives฀may฀elect฀to฀defer฀their฀base฀salary฀for฀the฀following฀year฀and฀any฀short-term฀variable฀pay฀award฀earned฀for฀that฀year,฀which฀is฀payable฀in฀the฀follow-
ing฀year.฀The฀plan฀has฀only฀two฀investment฀options,฀an฀interest-bearing฀account฀that฀pays฀interest฀at฀the฀prime฀rate฀and฀a฀Kodak฀phantom฀stock฀account.฀
Only฀the฀Company’s฀executive฀officers฀are฀permitted฀to฀defer฀into฀the฀phantom฀stock฀account.฀The฀Company฀does฀not฀provide฀its฀executive฀officers฀any฀
incentives฀to฀encourage฀them฀to฀participate฀in฀the฀phantom฀stock฀account.฀The฀plan’s฀benefits฀are฀neither฀funded฀nor฀secured.฀As฀of฀December฀31,฀2004,฀
288฀executives฀have฀account฀balances฀under฀the฀plan,฀including฀two฀of฀the฀named฀executive฀officers.