Eastman Kodak Co. (KODK) Admits to Having Deficient Internal Controls
The Financial Times recently reported that in July Kodak gave five former executives stock worth millions of dollars in exchange for stock options they did not own, which resulted in former officers and employees exercising 300,000 options they had previously forfeited. According to Kodak’s chief financial officer, Kodak’s “controls were inadequate with regard to the timely input and verification of master data updates for equity grants and therefore, resulted in errors or misstatements in employee equity account balances.” Kodak took a $5.1 million expense in the third quarter related to the options.
