Personal care appliance maker The Gillette Company announced today that James M. Kilts, chairman and CEO, has extended his employment contract for one year to Jan. 19, 2005, following the expiration of his current 3-year contract on Jan. 19, 2004.
The principal terms of the contract extension, under which further renewals are possible, call for Mr. Kilts to receive a stock option award on Jan. 2, 2004, of 1 million shares, the same amount that Mr. Kilts received in 2003; and Stock Appreciation Rights (SARs) of 1 million share units that have an approximate 6-month valuation term, expiring on Jan. 2, 2004. The SARs were granted in consideration of Mr. Kilts agreeing to remain with the company until Jan. 19, 2005.
Mr. Kilts' current base compensation is U.S. $1.35 million, up from $1 million in 2002. He received a bonus of $1.7 million for 2002 performance. His target bonus for 2003 remains the same as 2002. It will be an amount that could be up to twice his base compensation, depending on performance.
to Daily News