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A federal judge in Manhattan on Monday cleared Eastman Kodak Co. to pay up to $4.5 million in bonuses to 12 top executives and senior managers, along with a onetime cash payment of up to $1.5 million to its co-president and chief operating officer, Dow Jones Newswires reported.
U.S. Bankruptcy Judge Allan Gropper approved the continuation of the bonus programs, which Kodak put in place before its January bankruptcy filing, Dow Jones reported. Co-President and COO Laura Quatela can earn $600,000 to $1.5 million based on how much money Kodak raises in its auction of its digital patent portfolio and how quickly such a sale closes.
An auction of those digitals patents is slated for this week and could raise upwards of $2 billion. The digital patent auction is viewed as critical to Kodak’s emergence from bankruptcy.
The $4.5 million in bonuses would go to Kodak insiders and executives, including Chairman and CEO Antonio Perez, Dow Jones reported. The bonuses are tied to Kodak's financial performance.
Kodak last week reported its second-quarter loss grew as revenues fell, but the company said its operating results improved and are ahead of its plan.
Kodak logged a net loss of $299 million, or $1.10 a share, versus $179 million, or 67 cents a share, in the second quarter 2011, the company reported Friday. Before reorganization items, the net loss was $139 million, an improvement of $40 million compared with a year ago.
Revenue of $1.1 billion was down 27 percent. Kodak cited its exit from the digital-camera business and reduced sales of traditional products, among other factors.
Kodak’s cash balance on June 30 was nearly $1.3 billion, down from $1.4 billion at the end of the first quarter but up from $957 million on June 30, 2011.
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