Posts Tagged ‘business’
Respected stock market analysis website Seeking Alpha doesn’t think too highly of the way Kodak CEO Antonio M. Perez is leading the beleaguered photo company:
It would not be the first time that Mr. Perez, who became CEO of Kodak in 2005, has attempted to receive a large payment for his services to the detriment of his company. We had concerns about Kodak’s compensation policies in May 2010, when we noted practices such as Mr. Perez’s having amended (for the fourth time) his initial employment agreement and received an ad hoc award of 500,000 stock options at a low exercise price of $4.54 in October 2009 for “retention purposes.” Although Mr. Perez’s compensation decreased by around 55% year over year to $5.7 million in 2010, it remained grossly disproportionate compared to those of his subordinates, given that the median pay for Kodak’s other named executive officers was only $1.1 million. This suggests that Mr. Perez’s board – which he also chairs – allowed him so much freedom that he was able to prioritize his own interest ahead of his staff, customers and investors.
Earlier this month, Kodak was given permission to stop providing health and welfare benefits to tens of thousands of retirees. The move came just months after the company asked for permission to hand out $13.5 million in bonuses to 300 executives and employees.
Kodak’s CEO Prioritizes His Compensation Even Amid Bankruptcy [Seeking Alpha]
Kodak has finally been thrown a lifeline. Yesterday, the beleaguered photography company announced that it had convinced banks to loan it $793 million in order to climb out of bankruptcy by the first half of 2013. The loan agreement comes with one big catch: Kodak must be able to sell its extensive collection of patents for at least half a billion dollars.
Yahoo made some management moves a couple of weeks ago, with VP Adam Cahan becoming head of the company’s mobile endeavors and its photo-sharing service, Flickr. Cahan was previously the founder and CEO of IntoNow, a 12-week-old company that Yahoo acquired last year for $20 to $30 million.
The Olympus scandal that rocked the business world last year was one of the biggest cases of financial fraud ever seen in corporate Japan. The Economist has published an interesting piece on why Japanese capitalism might not learn from the mistake:
At one point Olympus’s shares lost about 80% of their value, yet its institutional shareholders uttered not “one word” of criticism against the company’s board [...] For many, the Olympus scandal highlighted the need for more checks and balances. Mr Woodford (pictured), whose angry memoir is to be published this month, likens Japanese boardrooms to “Alice in Wonderland”. They need more assertive shareholders and regulators, and more independent directors, he reckons.
Keidanren, Japan’s big-business lobby, appears to have drawn the opposite conclusion. Olympus had three external directors, a high number for Japan [...] The problem, in Keidanren’s view, was too much external scrutiny.
After the United States was rocked by its own series of financial scandals in the early 2000s, the government increased regulation by passing the controversial Sarbanes–Oxley Act of 2002.
After the Olympus scandal, Japan Inc wants less scrutiny [The Economist]
Last week, Canon reported its latest quarter’s financial results, which included some big double-digit drops in revenue and profit. Now it’s Nikon’s turn to show the world how it’s finances are doing. The company reported its latest quarterly results yesterday, and the numbers are decent.
It seems like Kodak is having a hard time figuring out how to getting its finances back in the black. Kodak has announced its 3rd quarter financial results, and the numbers aren’t pretty — they’re downright ugly, actually. Despite raking in $1 billion over the three-month period ending in September (down 19% from the same period last year), the company still posted a net loss of $312 million (up from a loss of $222M during the same period last year).
When Sony unveiled its “One Sony” game plan back in March after posting billions in losses, the company highlighted digital photography as one of its three main pillars going forward. It was a bit of a surprise, then, when Sony announced today that it will soon be closing a large lens manufacturing factory in Japan as part of the restructuring efforts.
People say money can’t buy happiness. Turns out there’s another thing it can’t buy: photo sharers. Despite raising a staggering $41 million in funding before even launching, the photo sharing app Color has been struggling to find users. Even after major pivots that changed the service’s DNA, the app only has less than half a million active users.