Hershey Co (NYSE:HSY) and its Trust plans to elect additional members to fill up positions that were left in the period of one year after the firm rejected the bid acquisition from Mondelez International Inc (NASDAS:MDLZ), which prompted a chain of resignations of most board members.
Earlier in the month, Michele Buck was made the new Chief Executive Officer of the company. The Hershey Trust plans to add three more members; the retired James Katzman, the partner of Goldman Sachs Group Inc (GS.N), Jan Loeffler Bergen, the CEO of Lancaster General Health and Melissa Peeples-Fullmore, an Educationist and alumni of Hershey School.
The previous leaders who have long resigned accused the firm’s management of poor governance and mismanagement of funds. The new leaders are expected to help the Boards in their respective mandates to achieve the overall goal of the organization.
Early this year, Hersey was forced to reduce its sales projections from 4 percent down to 3 percent. This was due to the challenges that the company is experiencing in dealing with ever-changing consumer purchasing habits and behaviors both within the US markets and overseas marketplace.
The company also plans to reduce its workforce globally by about 15 percent as part of its major plans to improve its revenue margins by 2020. The affected workers will largely comprise of those who work hourly outside the United States. If this is implemented, more than 2, 700 jobs will be lost.
Hershey Trust agreed with its attorney general to employ more board members to increase the number from the current 9 to 13. Sadly, though, two its present members are set to retire towards the end of the year. This will leave a total of 6 possible slots to be filled up.
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In 2002, Hershey once put up a sale with a motive of diversifying its assets. The proposal attracted an offer of USD12.5 billion by the Chewing Gum Company, Wrigley Jr. Co. Unluckily, the deal was discarded following a court petition from its Pennsylvanian Attorney General to obstruct the successfully petitioned a court to block the bid.
