Eastman Kodak seeks permission for bonus payouts to 300 executives
07 Apr 2012
Eastman Kodak Co is seeking permission for bonus payouts to around 300 executives and other employees, a total of $13.5 million in bonuses in a bid to persuade them to continue with the company as it reorganises under bankruptcy protection.
According to the Rochester-based photography company, the targeted employees had knowledge and skills critical to help the business emerge from Chapter 11. It added they would be difficult to replace if they were to take up other offers. The employees include 119 middle managers who would share $8.5 million of the sum.
Further, Kodak told retirees it had, for the time being, withdrawn supplemental health care benefits for about 16,000 Medicare-eligible retirees. The company would rather create a committee of retirees to examine the issues of medical and survivor benefits.
''Once the . . . committee is formed, we will take another look at what is the best approach to address our legacy retiree costs,'' Kodak said in a letter dated Wednesday.
Kodak included the request in an employment continuity plan outlined by it in a US Bankruptcy Court filing in New York this week.
The 119 managers identified as Group 1, whose names the filing said were ''sensitive and highly confidential,'' would receive bonuses equivalent to 35 to 50 per cent of their base salaries while the 200 members of Group 2 would share about $5 million, each receiving 25 per cent or less of the base salary.
