Kodak Clears Itself of Wrongdoing in CEO Stock Options Scandal
The law firm hired by Eastman Kodak (NYSE: KODK) to independently investigate the propriety of awarding its top executives stock options just prior to announcing receipt of a major government loan (to transition to making personal protective equipment) has largely absolved the former camera and film company of any wrongdoing.
The investigation concluded that while internal procedures should be updated, there was nothing wrong with Kodak issuing its CEO and others options for millions of shares the day before it announced the loan. The company had known for about for a week that it would be receiving the loan.
Kodak's stock price surged 1,000% on the loan agreement, generating a potential massive windfall for the executives, but the share price subsequently cratered after the option grants were revealed, and the government put the loan on hold until a proper investigation could be completed. The Securities and Exchange Commission has launched a probe into the awards.
Source Fool.com