0 to $79 million in two days! Kotak CEO Jim Continenza sees unbelievable growth in fortunes
Eastman Kodak Co CEO Jim Continenza has added $79 million to his net worth on Wednesday when his options in the imaging company turned from worthless to lucrative, thanks to a US government loan for a pharmaceutical ingredients supply deal that super-charged the value of his shares.
Eastman Kodak Co CEO Jim Continenza has added $79 million to his net worth on Wednesday when his options in the imaging company turned from worthless to lucrative, thanks to a US government loan for a pharmaceutical ingredients supply deal that super-charged the value of his shares.
Continenza was given some stock options in 2019 when he had became Kodak's CEO and executive chairman. These stocks had no value on Monday, but were worth $59 million on Wednesday following the rally in the stock, according to an analysis by compensation consultant Farient Advisors. Continenza also owned 650,000 Kodak shares as of June 23, which went up in value on the news by $20 million, taking his total wealth to $79 million.
The company stock saw a total increase of 1,167% in value in two days, after the administration of President Donald Trump agreed to provide a $765 million loan for the company to produce pharmaceutical ingredients to help fight the coronavirus pandemic.
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For those unaware, Kodak had filed for bankruptcy in 2013. Before this deal, the company was valued at a little over $100 million. It ended trading on Wednesday with a market capitalization of $1.5 billion. Interestingly, more than half the company is owned by a few key insiders, including board directors Philippe Katz and George Karfunkel. They booked the majority of the gains in the company's rise in market value.
For those who don't know, Kodak was one of the most iconic corporates in the US a few decades back. Since then, it has taken a massive tumble.
The company is best known for its cameras but faced a major crisis as most users turned to smartphones to take pictures. Kodak was also known for its film and film processing, businesses that dried up with the growth of digital photography.
Earlier, stock options awarded to executives at US vaccine maker Novavax Inc swelled in value after a $1.6 billion grant from the federal government last month.
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10:40 AM IST