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This should not be confused as money in his pocket. Options give an executive the right but not the obligation to buy the stock in the future, at a price set today.
In theory, if the company realizes its potential, the stock price will rise. If that happens, the executive makes money. If it doesn't, the options expire without the executive realizing a penny. (A common occurrence to more than a few Kodak executives in recent years.)
The stock doesn't have to move much from current levels for Perez to realize a decent gain. If, for example, Kodak shares move up just 5 percent from the option exercise price of $25.88 a share, Perez would net $405,743.
Of course, out of that amount you have to subtract taxes and consider inflation. The options are restricted -- Perez will gain control of one third of the options in each of the next three years.
There is a multiplier effect here as well. If the shares grow 25 percent, the net gain is $2.03 million; at 40 percent the gain is $3.3 million.
Options are something that Perez has a lot of. In his four year tenure at Kodak, the CEO has received options on 1,076,630 shares. The exercise prices range from a low of $24.49 a share to a high of $31.71.