Kodak insists that no insider-trading occurred amidst the industrial dinosaur’s abortive but very exciting effort to become a generic drug giant during a global pandemic. Trading of shares that the sellers did not own? That is another story.
About 300,000 previously forfeited stock options were exercised by the former executives in July, according to a securities filing. Kodak said it incurred about $5.1 million in compensation expenses related to the options in the third quarter.
How, exactly, were these former executives able to unknowingly naked short those options? Well, we would like to remind you that we are talking about Kodak, here.
Kodak has determined that controls were inadequate “with regard to the timely input and verification of master data updates for equity grants,” Mr. Bullwinkle said. This resulted in errors or misstatements in employees’ equity account balances, he said. The maintenance and tracking of grant activity was done by a third-party administrator, Kodak said in a filing…. Kodak said it would try to recover about $3.9 million from the ex-employees for the fair value of the shares at the time of the sale and about $3 million from the withholding of taxes on behalf of the ex-employees.
Kodak, which for you stock market ‘Stoolies out there reported a robust 8,900% increase in quarterly losses on a 20% drop in sales, still insists it will one day be a pharmaceutical company. Pfizer, as you may have heard, already is, and its CEO doesn’t need to sell shares he doesn’t own to make a mint on potentially saving the world.
Pfizer Chief Executive Albert Bourla sold about 60% of his personal Pfizer holdings Monday…. On Monday, Pfizer and partner BioNTech said their Covid-19 vaccine showed in an early analysis to be more than 90% effective at preventing infections of the disease…. The news vaulted Pfizer and BioNTech to the front of the global race for a safe and effective vaccine and caused Pfizer’s share price to spike almost 15% to $41.99, its highest in more than a year.