Kessler in line for $44 million pay-off

The CEO of Lorillard is set to receive more than $44 million following the planned $25 billion merger of Lorillard with Reynolds American, according to a story by Associated Press writer Michael Felberbaum published by ABC News and citing regulatory filings with the Securities and Exchange Commission.

Murray Kessler is one of several Lorillard executives set to receive compensation if they lose their jobs after the deal closes.

The bulk of Kessler’s $44.7 million would come in the form of a payout of stock awards worth $32.8 million.

He’d receive also $10.6 million in cash, which amounts to three times his base salary and annual bonus.

Last fiscal year, Kessler’s pay was increased by 21 percent to $10.3 million, according to an AP analysis of a regulatory filing.

Upon completion of the deal, Kessler, who became CEO of Lorillard in September 2010, will get a seat on Reynolds’ board of directors, which will come with additional pay.