Kodak Suspends 401(k) Match

Kodak announced it is suspending its 401(k) match and not increasing executive compensation.

Saying that “most signs indicate that we may be facing a prolonged global recession,” Kodak Chairman and CEO Antonio M. Perez said the company is taking steps to ensure its solid position remains until the economic recovery.

Kodak announced that where permissible by law, its executives will not receive a salary increase in 2009, and that it will suspend for 2009 the company’s U.S. 401(k) match. A report on the Web site of an NBC news station in Albany said that company management also does not expect a payout in 2009 for the executive Leadership Stock program that is based on 2008 performance.

Kodak has withdrawn its full-year 2008 operating profit and sales forecast “because of the deepening global recession and changes in the value of the U.S. dollar,” the news report said.

However, according to Perez, “Kodak is financially strong and we are well positioned to manage through this economic downturn.’