Gillette CEO joins Times Co. board Analysts say Kilts may help bring in more ad dollars

The New York Times Co. said yesterday that Gillette Co.'s chief executive, James M. Kilts, has joined the newspaper publisher's board of directors.

Kilts, 57, is known for turning around struggling companies, including Nabisco Holdings Corp. and Boston-based Gillette, which is being sold for $57 billion to the consumer products giant Procter & Gamble Co.

During his tenure at Gillette, however, Kilts also provoked a furor over major job cuts and controversy over his generous compensation package and decision to sell the landmark firm.

Times Co. stock, which hit a 52-week low Wednesday, had been rising in the morning and surged midday after Times Co. disclosed Kilts's election to the board. It closed up 4.6 percent to $32.15.

''He has built his reputation on performance and created long-term shareholder value for the many companies with which he has worked," said Arthur Sulzberger Jr., chairman of Times Co., which owns The Boston Globe. ''I can point to no better example than the increase in market value of Gillette since he took over four years ago."

Under Kilts, the shaving giant's market value has grown about 36 percent, to $51.9 billion. Kilts, who rarely speaks to the news media, declined to be interviewed yesterday.

But through Gillette spokesman Eric Kraus, Kilts said: ''I'm delighted and honored to be part of a great American institution."

Analysts say Times Co. is probably looking to Kilts to help bring in new advertising dollars from companies like P&G, one of the country's largest advertisers. Last month, the New York media company said it planned to cut about 190 positions across the company, including at the Globe, because of unstable economic conditions and a sluggish advertising market.

Newspaper circulation and advertising revenue have declined industrywide as readers get more of their information from the Internet and other media.

Yesterday, Times Co. also reported that second-quarter profit would drop from the same period a year earlier because of lower advertising revenue. Over the past year, the company has seen its stock price drop about 21 percent.

''The New York Times numbers have been very disappointing," said Frederick Searby, an analyst with J.P. Morgan Chase & Co. ''He can help them to literally get dollars from consumer products companies.

''It's good to bring in someone from the outside who understands brands and understands the media market."

Kilts also brings to the table a management style built on discipline, accountability, and rigorous reviews of the status quo. He has experience in mergers and acquisitions, and is an aggressive cost-cutter: At Gillette and Nabisco, Kilts oversaw the elimination of 13,200 jobs.

If the sale of Gillette to P&G goes through, the companies plan to cut an additional 6,000 jobs from the combined entity. Kilts plans to serve as vice chairman of the combined company and run a new Boston-based Global Gillette Business unit, which will include razors and blades, batteries and the Braun electric razor. He has agreed to remain at the new company for at least one year.

James Mead, of the Connecticut executive search firm James Mead & Co., said Kilts has turned broken companies into some of the most successful businesses. Mead, who helped put together Kilts's management team at Gillette, said: ''There are not leaders out there with demonstrated results of that magnitude around the globe."

But in Massachusetts, Kilts's legacy is mixed. He will be remembered as the chief executive who sold a century-old icon and is due to receive compensation valued at $165 million. Kilts and Gillette also remain under investigation by Secretary of State William F. Galvin, who is looking into whether Gillette shareholders are receiving a fair price in the deal. ''The approach [Kilts] has taken to this merger has raised many questions about his personal concern for the employees as well as the region," Galvin said.

Kilts will join other industry leaders on the Times Co. board, including Brenda C. Barnes, chief executive of Sara Lee Corp., and John F. Akers, the retired chief executive of International Business Machines Corp. The position comes with $30,000 in annual compensation, plus $1,500 to $2,000 for meetings attended.

Kilts already sits on several other boards, including those of May Department Stores Co.

Jenn Abelson can be reached at abelson@globe.com.