1)First of all, the Kodak BOD does have a FIDUCIARY responsibility to the LONG term shareholders, even in ch.11
2) The Kodak BOD is mostly controlled by current and EX C Level exec. with decent reputations in the business community that they would like to keep intact.
A) Lead director Richard Braddock worked his way up to being the President and COO of Citigroup. Followed by a brief stint as CEO of Medco containment services. Followed up as Chairman/CEO of Priceline from 1998 until 2004.
Braddock owns appx. 400,000 share of Kodak, and elected to take part of his 2012 pay in shares at a valuation of 67cents a share.
B) Dennis Strigl worked his way up to becoming the CEO of Verizon Wireless and then President of Verizon Comm. before retiring.
C) Tim Donohue was the President of McCaw cellular before it was bought out by AT&T. He was also CEO of Nextel before he made a brilliant sale to Sprint.
D) William Hernandez worked his way up to the CFO position at PPG Industries which he held for 15 years
E)Kyle Legg worked her way up to President and CEO of Legg Mason Capital Management before retiring in 2009.
F) William Parrett former CEO of Deloitte Touche Tohmatsu Deloitte is the second largest professional services network in the world by revenue, having 182,000 employees in more than 150 countries providing audit, tax, consulting, enterprise risk
G) Doug Lebda Chairman and CEO of Lending Tree since 1996 now called Tree.com
H) Joel Seligman current President Univ of Rochester
I) Delano Lewis former CEO of Chesapeake and Potomac telephone, former CEO of NPR, Ambassador to South Africa.
Do these people want to sully their reputations by breaching their FIDUCIARY duty to the LONG term shareholders of Kodak?
Remember, their duty is to maximize the LONG term value of the shareholders NOT the short term value.
Well, he returns and is at it again. Blah, Blah, Blah!
For those of you that follow this man with trust or blindly, you should do a basic google search using either (The CEO Bankruptcy Bonus) or (Executive Compensation Chapter 11).
Take a look at how most executives get a share of the available $ pool during Chapter 11 and via the reorganization plan that is approved by the creditors. Some union shops have been able to get some $, however, Kodak never had a union.
Or, you can believe that the existing shares will survive. Intact.
As EK coming to a conclusion of its BK, some posts pf PRO are worth noting. The BOD is A1 and they have stocks & stock options which they would like to maximize for the benefit of all stakeholders.
"... The BOD is A1 ..."
Huh ... sports, I appreciate your posts - makes things more lively - but you just overdid it with your "Pro"-glorification ... that touched on a raw nerve :)... btw, I like my most recent response to "Pro" on Feb. 26 ... could you have imagined at that time, after all this AP/Quatela/"Pro" hype, that the DI patents are actually being sold for much less than $1 Billion?
"... Do these people want to sully their reputations by breaching their FIDUCIARY duty to the LONG term shareholders of Kodak? ... E)Kyle Legg worked her way up to President and CEO of Legg Mason Capital Management before retiring in 2009. ..."
Give. Me. A. Break! Take Kyle Legg, for example. Legg Mason was the largest shareholder of Kodak over the decade. Immediately after Kyle Legg came on the board late 2010, Legg Mason started to dump Kodak in Q1 2011. Legg Mason sold out before BK. Don't tell me "Legg Mason" did not have a "Leg(g)" inside Kodak. Don't tell me that Kyle Legg thought her common shares were worth something.
The BOD of Kodak is so screwed, they give a sheet about your common shareholders. IMO, they care very little about Kodak. They all have their own businesses and agendas, and are totally overwhelmed with this situation at Kodak; that's why they give AP such a long leash. From what I gather, only few on the BOD have an understanding of AP's distorted vision and strategy moving this huge company into print ... they have no clue about the print industry, no clue what's going on.
Kodak's in bankruptcy. These folks you talk about made the decisions that caused it. Period... It doesn't matter what they did in their past lives for other companies, just what they've done for Kodak. And they've done a horrible job. Stop being delusional about the facts. If anything, these people want to get Kodak out of bankruptcy and save their reputations - they could care less about the current shareholders...
"... 1)First of all, the Kodak BOD does have a FIDUCIARY responsibility to the LONG term shareholders, even in ch.11 ... The Kodak BOD is mostly controlled by current and EX C Level exec. with decent reputations in the business community that they would like to keep intact ..."
It's all a matter of priority. The duty of the BOD towards YOU, my dear common shareholder pro4kodak, slipped in priority SO MUCH that your statement becomes almost meaningless. If at all, some of these BOD members may feel a faint glimmer of responsiblity to meeting the company's obligations to exit BK. If they could achieve this, their record would be in fine shape. Whether or not the existing shareholders are part of this turnaround story would be a minor detail in their resume. Most serious investment firms have pulled out or reduced their investments with gigantic losses anyways.
I would like to know the role of Kodak in the agenda of Kyle Legg, for example, the ex-CEO of Legg Mason, whose investment managers pulled out their investments in EK over the last year, while you tirelessly argued about the $10's. Your ANY DAY NOW! and INTERNAL MEMO! stunts were all baloney, while the big boys did what they had to do - abondon this ship.
It all comes down to the kind of investor you are. Openly stated by Kodak they had papers on the table that would have prevented BK ( and a huge stock spike) that would have made each of those genius investors cream their pants. Unfortunately this fell apart on the 11th hour.
I am in it for feast... or famine.. like most who have hung on this long. Its all about personal style and how much your willing to put on the line.
I like putting my money where my mouth is.. and I have respect for those who share the same methodology.
That being said, I take it you have tens of thousands SHORT on Kodak right??
I dont like getting to personal on here, but the sole reason I am not a true LONG is my need for liquid 150k in the next 6 months. I am tied up for at least a year in all other directions and my portfolio is the only place to pull from.
I do believe Kodak will turn around quite nicely on the short term and has potential to increase many fold. I also believe that If I time the transition correctly I am exit, invest, and re-enter on correction to make up the 150k with out touching my principal investment. (I do believe there will be a sharp correction once gains are realized once over a dollar is seen)
Again only my opinion. I lost quite a bit here already so I dont have a stellar track record with Kodak :P
If I can manage a pull that off, I will be in for the LONG of it with the rest of you guys. GL