Inflation Hits Gillette CEO's Handout from P&G Deal

04 February 2005

On Tuesday WAMN reported that Gillette Company chairman/ceo James M Kilts will shave a personal fortune of around $153 million for his efforts in helping engineer his group's takeover by Procter & Gamble.

In common with other media reporting this story we got it wrong. Or, more accurately, we didn't know the half of it!

The latest news, gleaned from a filing with the US Securities and Exchange Commission, indicates that on completion of the sale the Gillette honcho will stagger home with a payoff of at least $185 million (€142.14m; £98.27m).

The new figure is based on Kilts's service contract, uncovered among a raft of Gillette filings with the SEC. Almost half the total payoff is conditional on the successful finalization of the deal - targeted for June 1 this year.

But lest cynics think Kilts bulldozed the deal for reasons of personal gain, he wants the world to know he was fueled by altruism. "[I wanted] to do what is right for shareholders and employees in the long term," he told the Wall Street Journal.

Whether or not Kilts gets to enjoy the Big PayDay is to some extent dependent on William Galvin, Secretary of Commonwealth for the state of Massachusetts. He has initiated an inquiry into the deal, citing concern over the amount of gelt set to be shoehorned into Kilts' sporran.

According to secretary Galvin, the size of the payments begs questions as to whether they were the motivation for the sale; also whether Kilts and other Gillette officers and directors discharged their fiduciary duty to Gillette shareholders.

And now: after the money game - a word game.

Rearrange the following randomized words into two well known proverbs ... they're a can of opened whole chickens its never hatched your worms count before.

Answers, please, by carrier pigeon to James M Kilts, Boston, Mass. You too could be the lucky winner of a corporate payoff.

Data sourced from Wall Street Journal Online; additional content by WARC staff