Kodak CEO's fortune swells US$79 million as stocks rally on US government loan

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Eastman Kodak Co CEO Jim Continenza added US$79 million to his net worth on Wednesday when his options in the imaging company turned from ...

Eastman Kodak Co CEO Jim Continenza added US$79 million to his net worth on Wednesday when his options in the imaging company turned from worthless to lucrative thanks to a U.S. government loan for a pharmaceutical ingredients supply deal that super-charged the value of his shares.

A worker cleans a Kodak booth at the Las Vegas Convention Center in preparation for 2019 CES in Las Vegas, Nevada, U.S. January 6, 2019. REUTERS/Steve Marcus/FilesREUTERS: Eastman Kodak Co CEO Jim Continenza added US$79 million to his net worth on Wednesday when his options in the imaging company turned from worthless to lucrative thanks to a U.S. government loan for a pharmaceutical ingredients supply deal that super-charged the value of his shares.

Kodak's stock increased 1,167per cent in value in two days, after the administration of President Donald Trump agreed to provide a US$765 million loan for the company to produce pharmaceutical ingredients to help fight the coronavirus pandemic. Trump announced the deal at a news conference on Tuesday evening.

While Kodak's rally enriched all its shareholders, more than half the company is owned by a few key insiders, including board directors Philippe Katz and George Karfunkel. They booked the majority of the gains in the company's rise in market value.Rochester, New York-based Kodak, founded in 1888, is best known for its cameras, which went out of favor with consumers as they turned to smart phones to take pictures.

This was not the first example of a U.S. government contract quickly enriching corporate executives. Stock options awarded to executives at U.S. vaccine maker Novavax Inc swelled in value after a US$1.6 billion grant from the federal government last month.

 

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