Kodak is making some changes to its retirement plans and other benefits. A memo from CEO Jeff Clarke to employees on Wednesday says that the company's Executive Council recently held discussions on Kodak's strategic direction, with a focus on how to accelerate long term growth and sustainable profitability.
Clarke says to make the company more competitive the following changes are being made:
- Moving from the current pension plan formulas and 401(k) match for U.S. employees to a single pension benefit formula, effective January 1 of 2015. With this change, our pension benefit will be competitive with companies in our industry. Employee pensions are unaffected through 2014.
- A reduction in U.S. vacation carryover from four to two weeks, implemented by end of 2015.
- A limited salary review for executives, based on both performance and gap-to-market, which will result in most executives not receiving an increase in 2014. Non-executive salary reviews are unaffected.
- A new structure for the Global Variable Pay program in the U.S., Canada and Israel to more closely tie rewards to company and business performance. The Wage Dividend program is unaffected.