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Craig Kallman, one of the key senior executives credited with Atlantic Records' successes in recent years, has signed a rich new long-term contract with the label, despite receiving significant offers from competitors of the Warner Music Group unit. Sources at the label confirmed that Kallman, Executive VP/Office of the Chairman, Atlantic Records Group, will retain his title and will continue to report to Atlantic Records Group Co-Chairman/Co-CEO Val Azzoli.

Sources credit Azzoli for closing the Kallman deal, which required reaching into the company's deep pockets. Competitors were offering big bucks in an attempt to woo the rising executive, sources said.

The New York-based Kallman is currently involved with breaking new artists P.O.D. and Drama. In the past, he has been directly responsible for helping the careers of such acts as Notorious B.I.G.'s Jr. Mafia. Kallman is an integral part of Azzoli's winning team, which also includes Andrea Ganis, Ron Shapiro and Lava Records President Jason Flom.

Kallman, Flom and Shapiro's names have all been mentioned in regard to the open president's position at Atlantic, but Azzoli has reportedly been hesitant to appoint any of the three execs to the slot because of the turmoil it could cause with the two who are passed over. Other reports have claimed that Flom's Lava contract is so rich that he passed on the Atlantic presidency.