[Intl-tobacco] RJR chief's compensation rose 133 percent in '99 (fwd)

[Robert Weissman]

RJR chief's compensation rose 133 percent in '99

WASHINGTON, March 14 (Reuters) - Andrew Schindler, chairman and chief
executive of R.J. Reynolds Tobacco Holdings Inc. (NYSE:RJR - news), saw
his salary more than double last year to $5.47 million as the company
split from Nabisco Group Holdings (NYSE:NGH - news).

Schindler, who also serves as RJR president, received pay which included a
$1.14 million bonus on top of a salary of $775,000 and $2.75 million in
restricted stock in 1999, according to RJR's proxy filed with the
Securities and Exchange Commission on Tuesday.

In 1998, when the nation's No. 2 cigarette maker was still part of the
food giant Nabisco, he received about $2.3 million -- including a $616,667
salary, $438,000 bonus and $1.2 million in restricted stock awards -- in
compensation as CEO and president of the RJR operation.

The company's compensation committee said it approved the 1999 bonus ``on
the basis of the performance ratings for the financial performance of RJR
and in recognition of the significant change in Schindler's
responsibilities at the time of the spinoff.''

Last June, Nabisco spun off all the shares it held of Winston Salem,
N.C.-based RJR to its stockholders and the holding company was created for
the cigarette maker which now trades on the New York Stock Exchange.

At the time of the spinoff, Schindler was granted a special retention
bonus of $3.6 million, of which 50 percent will vest at the end of three
years, 25 percent after four years and the remaining 25 percent after five
years, the proxy said.

Schindler, 55, also received $684,733 in long-term incentive payouts and
another $111,087 in other compensation in 1999, the proxy said.

However, the RJR holding company posted a 38 percent decline in net income
last year, $369 million down from $591 million. Net sales grew to $7.56
billion from $5.69 billion, up 33 percent for the year, although that was
because of higher prices as volume was down.

RJR's stock price has been hovering near its 52-week low of $16 per share,
less than half of its 52-week high of $34.

The shares were up 3/16 on Tuesday at 16-7/8 on the NYSE.