Kodak Says Ex-Executives Sold Stock Options They Didn’t Own

Kodak Says Ex-Executives Sold Stock Options They Didn’t Own

East­man Ko­dak Co. said five for­mer ex­ec­u­tives were able to col­lect mil­lions of dol­lars by sell­ing stock op­tions they didn’t own, an ad­mis­sion that is set to add to the scru­tiny the com­pany faces over the cir­cum-stances sur­round­ing a halted U.S. loan.

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 com­pen­sa-tion ex­penses re­lated to the op­tions in the third quar­ter.

Ko­dak Fi­nance Chief David Bull­win­kle said on an earn­ings call Tues­day that the com­pany had dis­cov­ered de­fi­cien­cies in its con­trols that had failed to pre­vent the “unau­tho­rized is­suance” of the com­pa­ny’s stock.