(FORTUNE Magazine) – Louis V. Gerstner Jr., 47, jokes that his move from the presidency of American Express to being CEO of RJR Nabisco completes a career circle: ''When I was in the Army, I graduated first in my class at cooking school at Fort Dix, New Jersey.'' Henry Kravis, a founder and senior partner of Kohlberg Kravis Roberts, the LBO firm that bought the tobacco and food giant for $25 billion last year, tapped Gerstner for the top job. He had the help of Thomas Neff, president of the executive search firm Spencer Stuart. Gerstner's terms: $10 million to take the job, $2.3 million salary, and a hefty annual bonus. Spencer Stuart's cut: $500,000 at the very least. Gerstner succeeds F. Ross Johnson, the RJR CEO who lost the bidding war for the company and moved out in February. Gerstner joined Amex in 1978 after 13 years at McKinsey & Co., the management consulting firm (Amex was his client) and took over as head of the charge card operation. He turned it into Amex's most profitable unit. Says Gerstner of his new job change: ''Executives should be repotted from time to time. Having different episodes in your career keeps you fresh and running hard.'' At RJR he will have to run very hard. He must sell billions of assets to reduce the company's $23 billion debt. Financial analysts say Del Monte foods, Planters LifeSavers, and RJR's 20% share of cable sports network ESPN are the businesses likely to go. Ones he will probably keep: cigarettes (Gerstner smokes cigars) and Nabisco Brands (he likes Shredded Wheat for breakfast). W.W.