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Kodak admits mishandling stock option process ahead of federal loan

WHECTV
Updated: September 16, 2020 04:49 AM
Created: September 16, 2020 04:47 AM

ROCHESTER, N.Y. (WHEC) — Kodak is now admitting it mishandled the process of awarding stock options before getting a federal loan for a major COVID-19 project.

The company released its internal review on the issue Tuesday night. It found that Kodak's general counsel didn't properly brief the board on the legal risks of giving stock options to CEO Jim Continenza ahead of the big news this summer.

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Continenza received the stock options the day before Kodak was awarded a $765 million federal loan to make generic drug ingredients.

Kodak lawyers argue the move wasn't illegal since the deal was "at a highly uncertain stage."

The loan has been placed on hold pending a federal investigation.

For Kodak's full statement, visit the company's website here. 


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