Flickr / spDuchamp
- Jim Continenza, CEO of Kodak, could earn more than $ 135 million from the camera's 1,200% stock increase two days this week.
- Continenza owns 650,000 Kodak shares, 3.8 million share options, and possibly another 242,000 shares associated with his re-election as a director.
- These holdings are valued at more than $ 135 million in cost based on Kodak's closing price of $ 33.20 on Wednesday.
- Kodak's shares rose 34% on Thursday, meaning that Continenza was able to generate an even higher return.
- You can find more stories on the Business Insider homepage.
Jim Continenza, CEO of Kodak, is ready to earn more than $ 135 million after the camera company's shares went up about 1,200% two days this week.
Continenza owns 650,000 Kodak shares, stock options that allow him to buy an additional 3.8 million shares at prices ranging from $ 3 to $ 12, and phantom shares that are linked to his reelection as a director and grant him an additional 242,000 shares. The documents of the Securities and Exchange Commission show.
The Kodak boss was granted 1.75 million stock options on Monday under an incentive plan introduced in 2013, as the SEC filings show. Around 29% of the new options will vest immediately, while the rest will be vested next year. All options expire in February 2026.
Kodak, a company known primarily for the production of cameras and photo films, saw an exploding stock price this week after receiving a $ 765 million government loan to manufacture drugs in response to the coronavirus pandemic.
Continenza bought its 650,000 Kodak shares between August 2019 and June 23 of this year for around $ 1.5 million. Their value rose from around $ 1.7 million on Monday to $ 21.6 million on Wednesday based on Kodak's closing price of $ 2.62 and $ 33.20 on those days.
With Continenza's stock options, he can finally buy 3.8 million more shares for less than $ 18 million.
These options were basically worthless on Monday, but could now bring him $ 108 million based on Kodak's closing price on Wednesday. The Phantom stock is valued at another $ 8 million and costs nothing.
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Overall, Continenza's stock, options and phantom stock are priced at more than $ 135 million, provided Kodak shares are trading at $ 33.20 or more when paid out.
Continenza's holdings could also be worth significantly more: Kodak's shares rose by up to 34% on Thursday.