Gillette directors hit the jackpot

SENIOR executives at Gillette, the razor firm, will take a cut of about $1.4bn (£750m) from the company's $57bn merger with consumer-goods giant Procter & Gamble, the Sunday Times reports.

James Kilts, chairman and chief executive, is expected to earn more than $120m from the deal. The former chief executive of Nabisco was brought in to the company four years ago when the consumer-goods company was struggling.

Edward DeGraan, Gillette's vice-chairman, is expected to make $41m, according to the newspaper. Charles Cramb, the chief financial officer, will receive $22m, while Peter Hoffman, president of blades and razors, is due $16m.

According to regulatory filings, nearly 2,600 managers with the Boston-based company will get an average windfall of $485,000 if the merger goes ahead. Of that, $280m comes from 'change of control' clauses in Gillette's managers' contracts that guarantee two years' salary and bonuses after a takeover.

Stock-option packages will also generate huge payments for the company's top brass. Gillette's four most senior executives will share an estimated $176m.