Sporting Proposition

Last month Gerard Barnes Lambert, retired lord of Listerine, was made president of Gillette Safety Razor Co. (TIME, May 11). Last week a Gillette stockholders meeting was called for June 10, at which time an interesting sporting proposition will be voted upon. The essence of the proposition is that President Lambert will receive a bonus rather than a salary. If Gillette earns less than $5 a share ($10,000,000) during any year, he will be paid nothing. If it earns $5, he will get 20,000 shares of stock. If the earnings exceed $6, he will be given another 20,000 shares. Should Mr. Lambert succeed in pushing Gillette's 1930 earnings of $3.62 up to $5, it is reasonable to expect that the stock will rise from its present level of $34 to $50, which would make his bonus worth $1,000,000. Earnings of $6 a share might result in a bonus of $2,400,000. Reserved by the directors is the right to change the plan to a straight salary should it be mutually desirable. A good host, an enthusiastic yachtsman, able Gerard Lambert has enjoyed himself since leaving the presidency of Lambert Co. in 1928. Last week friends said that the Gillette management has long been seeking him, admiring his huge success in the merchandising of Listerine. To him is credited the famed Halitosis campaign which was carried on largely under his direction. He formed Lambert & Feasley, an advertising agency owned by Lambert Co. Its present accounts include Phillips Petroleum, Prophylactic Brush, McKesson & Robbins, Inc. and, of course, the $5,000,000-a-year Lambert Pharmacal account. An accomplishment of which Mr. Lambert is specially proud was some advertising copy used in American Mercury, bearing the caption: "In Defense of Babbitts." When he left Lambert Co.'s presidency, he was succeeded by his friend John Lawrence Johnston, previously vice president of Bond & Goodwin, Inc. It is thought that Mr. Lambert has disposed of some of his Lambert holdings and acquired a large interest in Gillette. Last week Gillette was glad to announce it has increased its payroll by 30%. In the chairmanship is Henry Jaques Gaisman, previously on the executive committee, and before that head of AutoStrop Safety-Razor Co. He is active in the company's new management. With long experience as an inventor and razor technician he can face such problems as arose last month when American Safety Razor Corp. put a new Gem on the market. Banker John Edward Aldred resigned last fortnight as chairman of Gillette, but remains a director. Last week it was asserted that the changes which have ended by placing Mr. Lambert in the position once held by proud King Camp Gillette, have not altered the company's banking sponsorship.

Big Suit What may be a $10,000,000 special profit for Gillette, but what would not be counted as earnings, was sought last week. Gillette sued United Cigar Stores for $10,000,000 damages, charging that in 1927 the two firms entered into a ten-year contract by which United was to retail Gillette products, but in which United misrepresented facts. The facts concerned the number of razors and blades United is able to sell. United at the time was under the management of the Whelan Brothers, bought out in 1929 by the Brothers Morrow.

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