Kodak Loses Another Board Member, Takes on Water as Ship Sinks
January 2, 2012 10:25 AM
comment(s) - last by
Sell patents, bit a massive loan, or close up shop?
Poor Kodak has taken a beating since the advent of digital photography. Few consumers buy film anymore and Kodak’s line of digital cameras aren’t even close to setting sales records. Kodak is facing a bleak future and has previously stated that it might be forced to close up shop as early as this year if things don't change.
Kodak is also facing growing personnel losses within the company. The firm has announced the loss of a third member from its board of directors in the last week. The latest loss is Laura Tyson who resigned her position on the board of Kodak Thursday. The resignation was confirmed in a SEC filing that Kodak made on Friday.
Tyson is a professor at the Walter A. Haas School of Business at the University of California, Berkeley. Tyson is also a member of President Obama's Economic Recovery Advisory Board and advised President Clinton when he was in office.
Kodak is in such dire financial straits that the firm is looking at possibly selling off patents it holds to stay solvent. It has been estimated that the patents Kodak holds are
worth five times
the company's current market cap.
The other two directors that left Kodak last week include Adam Clammer and Herald Chen. The two directors were both from a private equity firm called KKR & Co and had been on the board since 2009.
reports that Kodak had also warned that it might have to raise $500 million in new debt in lieu of selling patents to stay solvent. Kodak hasn't turned an annual profit since 1997.
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Don't totally blame the board!
1/11/2012 3:04:52 PM
No surprise the board is now jumping ship. What happened is Perez and Faraci bunkered themselves in by hand picking the board of directors, and strategically made Perez the Chairman of the Board, a sinister strategy in my opinion. C’mon, really? Who let’s this happen? Do you think a CEO who is Chairman of the Board will put anyone on the board that might threaten him or even debate him? So now, one by one the members of the board are realizing they were played like pawns. So once they were concrete bunkered, Perez and Faraci were free and clear make business decisions that are/were clearly compensation driven for themselves and NOT for the long term viability of Kodak traditions and Kodak long term health and Kodak employees. DISGRACEFUL! Their agenda clearly seems to have been to eliminate every traditional Kodak business line by ignoring every “Kodak picture” like product or division, then selling it off. Their focus has been on inkjet commercial printing, sorry that just doesn’t fit the Kodak logo, and that’s the philosophy that has death spiraled Kodak, plain and simple. Focusing on an arena that has and will do nothing but decline, it’s obvious they have blinders on and will never embrace where Kodak should/could have been headed.
Even if the board of directors (those that are left) came out of their comas or grew some cohonas and did what they should have done 6 or 7 years ago (do they know the function that the board of directors is supposed to do?), it’s obviously too late, the damage is irreversible.
And now the “board of directors elected Laura Quatela” as a new Kodak President. Translation, Perez and Faraci appointing a puppet in a dire attempt to make Wall Street think something has changed and extend their lucrative salaries for who knows how much longer.
"I modded down, down, down, and the flames went higher." -- Sven Olsen
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