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A sudden surge in Eastman Kodak Co.’s stock this week has turned a bunch of money-losing executive stock-option grants made in the past two years — including some made on Monday — into a sudden personal windfall for the company’s executive chairman.
On Tuesday, Kodak KODK, -26.21% and the U.S. government announced a preliminary agreement under which the firm would receive a loan to produce drug ingredients. The news has since led the one-time photography giant’s share price to more than triple.
This week, the company’s stock has risen to as high as $60 a share from around $2 last week. It is the latest company to capture investors’ attention as they scrabble to find winners in a volatile and often confounding market. Even companies in bankruptcy proceedings, such as Hertz Global Holdings Inc., have surged in value.
One of the largest winners from the rebound is Kodak Executive Chairman Jim Continenza, who stands to gain more than $95 million from the rebound if he exercises his options at current prices. Those paper gains would change depending on where the stock trades whenever he decides to sell his stake.
In a statement, a company spokesman said Continenza’s potential gains haven’t been realized and that Continenza, Kodak’s biggest individual shareholder, believes strongly in the company, has never sold a share of its stock and has no intention of doing so. As of late March, Continenza owned 5.8% of Kodak’s shares.
An expanded version of this report appears on WSJ.com.
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