Lorillard CEO to get $44M-plus after $25B takeover by rival cigarette maker Reynolds American

MarketsAssociated Press

Regulatory filings show the CEO of Newport cigarette maker Lorillard Inc. is set to receive more than $44 million following the planned $25 billion merger with Reynolds American Inc.

According to a filing with the Securities and Exchange Commission late Friday, Kessler is one of several Lorillard executives to receive "golden parachute" compensation if they're terminated after the deal closes.

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Kessler also is set to get a seat on Reynolds' board, which 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.

Together the new company would market Camel, Newport, Pall Mall and Natural American Spirit cigarettes, as well as Vuse-brand electronic cigarettes.