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                                                                    EXHIBIT 10.1

                              THE DIAL CORPORATION
                           15501 North Dial Boulevard
                           Scottsdale, AZ 85260-1619

                                                                  August 7, 2000

Mr. Herbert M. Baum
The Dial Corporation
15501 North Dial Boulevard
Scottsdale, AZ 85260-1619

Dear Herb:

On behalf of the Board of Directors of The Dial Corporation (the "Company"), I
want to thank you for agreeing to serve as Chairman, Chief Executive Officer
and President of the Company. This letter sets forth the terms of your
employment with the Company:

     1.   Position. Commencing upon your election by the Board of Directors of
          the Company, you will serve as Chairman, Chief Executive Officer and
          President of the Company reporting to the Board of Directors of the
          Company.

     2.   Base Salary. While employed by the Company, you will receive a base
          salary at an annual rate of $800,000 payable in accordance with the
          Company's customary payroll practices. While your right to receive
          additional compensation as a non-employee Director of the Company will
          be suspended during the time you serve as an employee of the Company,
          any vesting conditions pertaining to your Director compensation will
          continue as if you were a non-employee Director. You will recommence
          receiving compensation as a non-employee Director of the Company in
          the event you remain on the Board of Directors following the
          termination of your employment with the Company.

     3.   Bonus. You will receive a bonus in the discretion of the Executive
          Compensation Committee for each year of your employment with the
          Company; provided, however, that you will receive a minimum guaranteed
          bonus of $500,000 payable on the earlier of (i) your termination of
          employment with the Company with the consent of the Board of Directors
          and (ii) the first anniversary of your continued employment with the
          Company.

     4.   Elective Deferral. Notwithstanding the foregoing, you may elect to
          defer receipt of your salary and bonus on terms and conditions
          consistent with the Company's Management Deferred Compensation Plan.
          If your employment with the Company terminates with the consent of the
          Board of Directors, you will be treated as a "retiree" for purposes of
          vesting in any discounted restricted stock units acquired pursuant to
          such Plan. However, at your request made at least six months prior to
          your termination of employment with the Company, the Company will
          continue to maintain your deferred compensation account balance
          following your termination of employment so long as you remain on the
          Board of Directors of the Company.

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Mr. Herbert M. Baum                   -2-                         August 7, 2000

5.   Benefits. While employed by the Company, you will be entitled to receive
     the welfare benefits and perquisites provided by the Company to its former
     Chief Executive Officer, including an annual physical in line with your
     historical practices, a health club and a cell phone. The Company's health
     and medical benefit programs will include you and your spouse, and any
     waiting period for eligibility to participate in such programs will be
     waived. In addition, you will be entitled to weekly first-class air travel
     between Scottsdale, Arizona and your home in Florida and to the use of a
     car, leased in the Company's name, while you are employed by the Company,
     with all expenses paid by the Company on a grossed-up after-tax basis.

6.   Stock Options. Upon your election by the Board of Directors of the Company,
     you will be granted options to buy 375,000 shares of the Company's common
     stock, which options will have a fair market value exercise price and will
     vest at the rate of 1/3 per year assuming your continued employment with
     the Company; provided, however, if your employment with the Company
     terminates with the consent of the Board of Directors, you will be treated
     as a "retiree" for purposes of these stock options. All other terms and
     conditions of these stock options will be consistent with the stock options
     granted to the Company's senior executives in March 2000, including
     accelerated vesting upon a "change in control" of the Company.

7.   Supplemental Pension. By joining the Company, we understand that you will
     forfeit your right to a single life annuity from Hasbro equal to
     approximately $67,000. Accordingly, the Company agrees to pay you a $67,000
     single life annuity (in monthly installments) commencing upon the later of
     your termination of employment with the Company and your attainment of age
     65, subject to offset for any pension benefit that you may earn from the
     Company.

8.   Temporary Housing. The Company agrees to provide you, on a grossed-up
     after-tax basis, with furnished temporary living accommodations in the
     Scottsdale area while you are employed by the Company. Such accommodations
     will be leased in the Company's name, and the Company will pay all
     utilities and ancillary expenses.

9.   Relocation. The Company will pay all expenses relating to the relocation of
     your personal effects from your home in Rhode Island to the Scottsdale area
     and, following your termination of employment with the Company, from the
     Scottsdale area to your home in Florida. In addition, we understand that
     you may feel it is appropriate to pay or reimburse Hasbro for expenses
     relating to the relocation of your personal effects from your former home
     in Arizona to your home in Florida. At your request, the Company will
     either pay or reimburse Hasbro for such expenses.

10.  Legal Expenses. The Company will pay or reimburse you for all legal
     expenses that you may incur in connection with your termination of
     employment with Hasbro.

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Mr. Herbert M. Baum                   -3-                         August 7, 2000

Herb, let me again thank you for agreeing to serve. I look forward to
continuing our relationship.

                                     Sincerely yours,

                                     /s/ Michael T. Riordan

                                     Michael T. Riordan
                                     Chairman, Executive Compensation Committee