Gillette Co. Chairman and Chief Executive Officer James Kilts received almost U.S. $2.75 million in salary and bonus in 2002, reports the company. Kilts also received options for 700,000 shares, which represent 4.9 percent of total options awarded to Gillette employees in 2002, according to a company statement filed with the U.S. Securities and Exchange Commission.
Kilts salary—$1.05 miilion—and bonus—$1.7 million—increased from $947,917 and $1.25 million in 2001. According to Gillette, Kilts’ compensation in 2002, including base salary, target bonus and number of stock options, was included as part of his employment agrrement when he was hired in 2001.
The statement also asks Gillette shareholders to vote on a proposal to declassify the board of directors so that all directors are elected annually rather than at staggered intervals. The board recommends a vote against the proposal.
Another sharehoder proposal requests that the board establish a policy of expensing the costs of all future stock options in the company’s annual income statement. The board also recommends a vote against this proposal, which it considers premature. The board supports treating stock options as an expense, but only after the Financial Accounting Standards Board has ruled on the practice.
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