Lorillard (NYSE:LO) announced Thursday that Murray Kessler has been chosen as its new chief executive, succeeding Martin Orlowsky who served as CEO since 1999.
Kessler, 51, previously served as the head of smokeless tobacco company UST before its acquisition by Altria Group (NYSE:MO) in 2009. Orlowsky will retire as chairman on December 31, and will stay on at the company in an advisory role for two years beyond the expiration of his contract.
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Lorillard said Kessler's will receive a base salary of $1.2 million per year, and a $1.8 million incentive plan to be paid if certain targets are met. Kessler will also receive a signing bonus of $1 million, and a long-term incentive opportunity of $5 million per year.