KODK) shares jumped in pre-market session Wednesday as the special committee appointed by its board declared the outcome of its independent review on the company’s handling of stock options to the CEO.
according to Bloomberg.” data-reactid=”20″>What Happened: The committee remarked that although there were no violations of the law, the company did a sub-par job in matters of corporate governance, according to Bloomberg.
halt the loan when the reports about alleged insider trading broke out.” data-reactid=”21″>In July, the Rochester-based photography company received a $765 million loan under the Defence Production Act. The loan was granted with the intent to aid the manufacturing of generic drugs. However, in August the government decided to halt the loan when the reports about alleged insider trading broke out.
A special committee of Kodak’s board engaged a law firm to review share purchase transactions and option grants to company insiders – CEO Jim Continenza and board member Philippe Katz.
One of the recommendations of the special committee is to revamp the company’s executive compensation packages and its policies on insider trading, the Financial Times reported.
According to FT, Continenza accepted the committee’s observations and agreed to implement its suggestions citing a “need to take action to strengthen our practices, policies and procedures.”
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