The CEO of cigarette maker Lorillard Inc. is set to receive more than $44 million following the planned $25 billion merger with Reynolds American Inc. Murray Kessler is one of several Lorillard executives to receive compensation if they're terminated after the deal closes.
Regulatory filings show the compensation package will be about three times Kessler's base salary and annual bonus.
The News & Record of Greensboro reports that upon completion of the deal, Kessler, who became CEO of Lorillard in September 2010, will get a seat on Reynolds' board of directors. That position will come with additional compensation.
Reynolds announced the deal in July to combine two of the nation's oldest and biggest tobacco companies, creating a formidable No. 2 to rival Altria Group Inc., owner of Philip Morris USA.
The merged companies would market Camel, Newport, Pall Mall and Natural American Spirit cigarettes, as well as Vuse-brand electronic cigarettes.
Lorillard says the Federal Trade Commission has asked for additional information as part of an antitrust review of the deal that's expected to close in the first half of next year.
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