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Hershey Replaces Board

TSC Staff

The trust that controls Hershey(HSY) is restocking the candy maker's boardroom in a move aimed at boosting company performance.

Hershey announced Sunday that eight board members had resigned, and that the Hershey Trust had elected eight replacements.

The changes come after the company last month reported poor third-quarter results and predicted troubles in the fourth quarter. The current chairman and CEO, Richard Lenny, has reportedly clashed with the trust and has announced he will retire.

The trust has appointed Kenneth Wolfe as a new non-executive chairman, effective Jan. 1, which is when Lenny will leave the company. In addition to Wolfe, the new directors are Charles Davis, a former Goldman Sachs(GS) executive and the head of Stone Point Capital; Edward Kelly III, managing director of the Carlyle Group; Arnold Langbo, the former CEO of Kellogg(K); James Nevels, the chairman of the Swarthmore Group investment firm; Thomas Ridge, the former secretary of Homeland Security; Charles Strauss, a former Unilever(UL) CEO; and LeRoy Zimmerman, who is the chairman of the Hershey Trust.

The new independent directors will join existing board members Lenny and Robert Cavanaugh, a member of the Hershey Trust Board. David West, who has already been selected to succeed Lenny as CEO, will replace him on the board at the beginning of the year.

The eight resigning directors include two who were elected by common shareholders. Their successors will be elected at the company's annual meeting next year.

"The Hershey Trust, which is obligated to manage its assets solely for the benefit of Milton Hershey School, a school for children in need, has made clear it has not been satisfied with the Company's recent results," said Zimmerman in a statement announcing the changes.

Hershey shares finished Friday at $41.04.