© Reuters. An employee cleans a Kodak booth at the Las Vegas Convention Center to prepare for CES 2019 in Las Vegas
By Jessica DiNapoli
(Reuters) – Jim Continenza, CEO of Eastman Kodak Co (N :), topped up his fortune by $ 79 million on Wednesday when his options in the imaging company came through a US government loan for a super deal for the delivery of pharmaceutical ingredients have become from worthless to lucrative. calculated the value of his shares.
Kodak's shares rose 1,167% in two days after the government of President Donald Trump agreed to grant the company a $ 765 million loan to help manufacture pharmaceutical ingredients to fight the coronavirus pandemic. Trump announced the deal at a press conference on Tuesday evening.
The Continenza stock options granted to him when he became CEO and Executive Chairman of Kodak in 2019 were of no value on Monday, but were worth $ 59 million on Wednesday after the stock rally, according to an analysis by compensation advisor Farient Advisors. Continenza also held 650,000 Kodak shares on June 23, the value of which rose by $ 20 million in the news.
Kodak did not immediately respond to a request for comment.
Before the news of the deal, Kodak, which emerged from bankruptcy in 2013, was worth just over $ 100 million. Trading ended on Wednesday with a market cap of $ 1.5 billion.
While the Kodak rally enriched all shareholders, more than half of the company belongs to some key insiders, including board members Philippe Katz and George Karfunkel. They accounted for most of the profits from the increase in the company's market value.
Based in Rochester, New York, Kodak was founded in 1888 and is best known for its cameras, which were popular with consumers when they turned to smartphones to take pictures. Kodak was also known for its films and film processing, companies that were drying up with the growth of digital photography.
This was not the first example of a US government contract that quickly enriched company executives. Stock options to executives of the US vaccine manufacturer Novavax Inc (O 🙂 grew in value last month after receiving a $ 1.6 billion grant from the federal government.
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