Kodak C.E.O. Got Stock Options Day Before News of Loan Sent Stock Soaring

[Nevilledog]

https://www.nytimes.com/2020/07/31/business/kodak-ceo-stock-options.html

At the beginning of this week, the Eastman Kodak Company handed its chief executive 1.75 million stock options.

It was the type of compensation decision that generally wouldn’t attract much notice, except for one thing: The day after the stock options were granted, the White House announced that the company would receive a $765 million federal loan to produce ingredients to make pharmaceuticals in the United States.

The news of the deal caused Kodak’s shares to soar more than 1,000 percent. Within 48 hours of the options grants, their value had ballooned, at least on paper, to about $50 million.

The government loan is part of a broader federal effort to increase the country’s ability to respond to the coronavirus and future pandemics.

*snip*

[spanone]

1. there was a time when there were laws against such activities....no more

welcome to trumpworld

[tanyev]

2. Wow. Weird coincidence, huh?

[Phoenix61]

3. We'll need another circuit just to try all the cases

spawned by Twitler. Gonna be some busy lawyers.

[Volaris]

8. Now THAT actually, sounds like a really good idea lol!

Congress can expand or contract the judicary at it's own will (minus the very existence of the SC)...why NOT set up a temporary federal circuit to funnel all the cases the dc and ny courts KNOW must be headed their way in about 6 more months?

[C_U_L8R]

4. Les jeux sont faits.

He better sell quick, if he can.

[crickets]

5. There was no real effort to hide the crime, was there? Wow. nt

[chowder66]

6. Not so sure I want generic drugs now. Shady practices.

[Hoyt]

7. If it makes you feel better, he lost $20+ Million in past two days.

And, he hasn't even exercised the options yet.

If he does, and sells the stock, he’ll pay taxes and at much higher rates if he does it in next year or so; assuming Kodak shares remain above $5 or so, we are pretty much guaranteed to get the loan repaid; and we’ll be bringing some jobs home from foreign countries.

And, if the deal broke any laws — and that’s a big “if” since this looks, at least on surface, like a common big tech arrangement that saves a struggling company lots of money if things don’t work out this way — it’ll be easy to prosecute.