Kodak 2004 Annual Report Download - page 184

Exhibits
75
E A S T M A N฀ K OD A K ฀ C O M PA N Y
฀
Changes฀฀Changes฀in฀Board฀compensation฀should฀come฀at฀the฀suggestion฀of฀the฀Corporate฀Responsibility฀and฀Governance฀Committee,฀but฀with฀full฀
discussion฀and฀concurrence฀by฀the฀Board.
Employee฀Directors฀฀The฀Company’s฀employee฀directors฀will฀not฀receive฀additional฀compensation฀for฀their฀service฀as฀directors.
IX.฀DIRECTOR฀ORIENTATION฀AND฀EDUCATION
Director฀Orientation฀฀The฀Company,฀under฀the฀direction฀of฀the฀Corporate฀Responsibility฀and฀Governance฀Committee฀and฀with฀the฀assistance฀of฀the฀Cor-
porate฀Secretary,฀conducts฀orientation฀for฀newly฀elected฀members฀of฀the฀Board.฀This฀orientation฀familiarizes฀new฀directors฀with,฀among฀other฀things,฀the฀
Company’s฀business,฀strategic฀plans,฀significant฀financial,฀accounting฀and฀risk฀management฀issues,฀compliance฀programs,฀conflicts฀policies,฀code฀of฀busi-
ness฀conduct,฀corporate฀governance฀and฀principal฀officers.฀It฀also฀includes฀meetings฀with฀and฀presentations฀by฀key฀management฀and฀visits฀to฀Company฀
facilities.฀Each฀new฀director฀will฀participate฀in฀the฀Company’s฀director฀orientation.
Director฀Education฀฀The฀Board฀also฀recognizes฀the฀importance฀of฀continuing฀education฀for฀its฀members.฀Each฀director฀is฀expected฀to฀participate฀in฀
continuing฀education฀in฀order฀to฀maintain฀the฀necessary฀level฀of฀expertise฀to฀perform฀his฀or฀her฀responsibilities฀as฀a฀director.฀The฀Board฀acknowledges฀that฀
director฀continuing฀education฀may฀be฀provided฀in฀a฀variety฀of฀different฀forms฀including:฀external฀or฀internal฀education฀programs,฀presentations฀or฀brief-
ings฀on฀particular฀topics,฀educational฀materials,฀meetings฀with฀key฀management฀and฀visits฀to฀Company฀facilities.฀The฀Company,฀under฀the฀direction฀of฀the฀
Corporate฀Responsibility฀and฀Governance฀Committee฀and฀with฀the฀assistance฀of฀the฀Corporate฀Secretary,฀will฀assist฀the฀directors฀in฀pursuing฀continuing฀
education฀opportunities.
X.฀MANAGEMENT฀EVALUATION฀AND฀SUCCESSION
CEO฀Evaluation฀฀The฀Executive฀Compensation฀and฀Development฀Committee฀evaluates฀the฀CEO฀annually,฀and฀reviews฀its฀actions฀with฀the฀Board.฀The฀
Board฀communicates฀its฀views฀to฀the฀CEO฀through฀the฀Chair฀of฀the฀Executive฀Compensation฀and฀Development฀Committee.฀The฀Executive฀Compensation฀
and฀Development฀Committee’s฀evaluation฀of฀the฀CEO฀is฀based฀on฀a฀combination฀of฀objective฀and฀subjective฀criteria฀and฀is฀discussed฀in฀the฀Company’s฀
annual฀Proxy฀Statement.
Succession฀Planning฀฀Succession฀planning฀for฀the฀Company’s฀CEO฀and฀President฀is฀the฀entire฀Board’s฀responsibility.฀To฀assist฀the฀Board,฀the฀CEO฀will฀
present฀to฀the฀Executive฀Compensation฀and฀Development฀Committee฀an฀annual฀report฀on฀succession฀planning฀for฀all฀senior฀officers฀of฀the฀Company฀with฀
an฀assessment฀of฀senior฀officers฀and฀their฀potential฀to฀succeed฀the฀CEO฀and฀other฀senior฀management฀positions.฀The฀CEO,฀together฀with฀the฀Chair฀of฀the฀
Executive฀Compensation฀and฀Development฀Committee,฀reviews฀this฀report฀with฀the฀entire฀Board.฀As฀a฀matter฀of฀policy,฀the฀CEO฀provides฀the฀Board,฀on฀a฀
regular฀basis,฀his฀or฀her฀recommendation฀as฀to฀a฀successor฀in฀the฀event฀he฀or฀she฀is฀no฀longer฀able฀to฀serve฀as฀CEO.
Management฀Development฀฀The฀Board,฀acting฀through฀its฀Executive฀Compensation฀and฀Development฀Committee,฀will฀determine฀that฀a฀satisfactory฀sys-
tem฀is฀in฀effect฀for฀education,฀development฀and฀orderly฀succession฀of฀senior฀and฀mid-level฀managers฀throughout฀the฀Company.฀There฀should฀be฀an฀annual฀
report฀by฀the฀CEO,฀first฀to฀the฀Executive฀Compensation฀and฀Development฀Committee,฀and฀then฀to฀the฀Board,฀on฀the฀Company’s฀program฀for฀management฀
development.
XI.฀ANNUAL฀PERFORMANCE฀EVALUATIONS
Board฀Evaluation฀฀The฀Board,฀under฀the฀direction฀of฀the฀Corporate฀Responsibility฀and฀Governance฀Committee,฀will฀annually฀conduct฀a฀self-evaluation฀to฀
determine฀whether฀it฀and฀its฀committees฀are฀functioning฀effectively.฀The฀results฀of฀this฀evaluation฀will฀be฀presented฀to฀the฀Board฀for฀its฀review฀and฀discus-
sion.
Committee฀Evaluations฀฀Each฀committee,฀with฀the฀exception฀of฀the฀Executive฀Committee,฀will฀annually฀conduct฀a฀self-evaluation฀of฀its฀performance.฀The฀
results฀of฀such฀evaluation฀will฀be฀reported฀to฀and฀reviewed฀by฀the฀Corporate฀Responsibility฀and฀Governance฀Committee.฀The฀Corporate฀Responsibility฀and฀
Governance฀Committee฀will฀report฀the฀results฀of฀its฀review฀of฀these฀evaluations฀to฀the฀Board.
APPENDIX฀A:฀DIRECTOR฀INDEPENDENCE฀STANDARDS
Pursuant฀to฀the฀recently฀finalized฀NYSE฀Listing฀Standards,฀the฀Board฀of฀Directors฀has฀adopted฀Director฀Independence฀Standards฀to฀assist฀in฀its฀determina-
tion฀of฀director฀independence.฀To฀be฀considered฀“independent”฀for฀purposes฀of฀these฀standards,฀a฀director฀must฀be฀determined,฀by฀resolution฀of฀the฀Board฀
as฀a฀whole,฀after฀due฀deliberation,฀to฀have฀no฀material฀relationship฀with฀the฀Company฀other฀than฀as฀a฀director.฀In฀each฀case,฀the฀Board฀will฀broadly฀consider฀
all฀relevant฀facts฀and฀circumstances฀and฀will฀apply฀the฀following฀standards.
1)฀ A฀director฀will฀not฀be฀considered฀“independent”฀if,฀within฀the฀preceding฀three฀years:
฀ •฀the฀director฀was฀an฀employee,฀or฀an฀immediate฀family฀member฀of฀the฀director฀was฀an฀executive฀officer฀of฀the฀Company;฀or
฀฀ •฀฀the฀director,฀or฀an฀immediate฀family฀member฀of฀the฀director,฀received฀more฀than฀$100,000฀per฀year฀in฀direct฀compensation฀from฀the฀Company,฀other฀
than฀director฀fees฀and฀pension฀or฀other฀forms฀of฀deferred฀compensation฀for฀prior฀service฀(provided฀that฀such฀compensation฀is฀not฀contingent฀in฀any฀