Preview Newsletter
Hershey Media Report 10/17/16
-
UPDATE: Hershey CEO J.P. Bilbrey to Step Down
Oct 14, 2016 | Wall Street Journal
By Annie Gasparro
Hershey Co. Chief Executive J.P. Bilbrey announced plans Friday to step down, following months of failed negotiations to sell the company to Mondelez International Inc., making him the third person to leave the candy maker’s top job in the past decade. -
Hershey begins CEO search as Bilbrey announces retirement (video)
Oct 14, 2016 | Reuters
By Greog Roumelioits and Lauren Hirsch
Hershey Co, the U.S. chocolate maker that Oreo cookie-maker Mondelez International Inc tried to acquire earlier this year, said on Friday that Chief Executive John Bilbrey would retire from his post on July 1. View video clip here: http://www.reuters.com/article/us-hershey-ceo-idUSKCN12E04D -
Hershey CEO Retiring
Oct 17, 2016 | Powder & Bulk Solids
The Hershey Co. announced that James E. Nevels, the company’s lead independent director, has informed the company that he does not intend to stand for re-election at the company’s 2017 Annual Meeting of Stockholders. -
Hershey's CEO Announces Plan To Step Down From His Chocolate Throne
Oct 17, 2016 | Junior College
By Adam Carter
Bilbrey will step down on July 1, 2017. Some people view Hershey as unsalable because of the trust's strong control and because any deal would also essentially require approval from Pennsylvania's attorney general. -
The Hershey Company (NYSE:HSY) CEO John Bilbrey to retire in July 2017: Tesla Motors Inc (NASDAQ:TSLA)
Oct 17, 2016 | Benchmark Monitor
Brief mention of Bilbrey's retirement in Benchmark monitor's roundup of news. Relevant portion pasted below. -
Hershey's CEO To Retire Soon; New Changes Underway?
Oct 16, 2016 | News Everday
By Joyce Vega
Hershey’s CEO, John P. Bilbrey is expected to resign from his position as a CEO of Hershey’s on July 1, 2017. After his resignation, he will keep a non-executive chairman position on Hershey's board. -
Hershey board member to end term
Oct 17, 2016 | Central Penn Business Journal
By Joel Berg
The lead independent director on The Hershey Co. board said he will not seek re-election in 2017 after eight years of service to the chocolate company. The director, James E. Nevels, will step down as of the company's next annual meeting, scheduled for May 3, according to a regulatory filing by the Derry Township-based company. -
Hershey CEO will step down
Oct 14, 2016 | Tribune Live
Hershey Co. CEO John Bilbrey is stepping down from the iconic Pennsylvania company, even as the firm's controlling shareholder, the $12.5 billion Milton Hershey School for impoverished children, faces its own board-level turmoil.
National Coverage
Full Text of Stories Below
Trade Coverage
Local Coverage
-
UPDATE: Hershey CEO J.P. Bilbrey to Step Down
Oct 14, 2016 | Wall Street Journal
By Annie Gasparro
Hershey Co. Chief Executive J.P. Bilbrey announced plans Friday to step down, following months of failed negotiations to sell the company to Mondelez International Inc., making him the third person to leave the candy maker’s top job in the past decade.
Mr. Bilbrey, 60, will retire as chief executive next July to spend more time with his family but remain as chairman, he said. Hershey said it is searching for a successor.
The leadership shake-up comes seven weeks after Oreo cookie maker Mondelez ended its pursuit of the chocolate company. Hershey rejected two bids from Mondelez over the summer, hoping for a higher price for iconic brands like Reese’s peanut butter cups and chocolate Kisses.
Two people close to the company’s controlling shareholder, the Hershey Trust Co., said trying to negotiate a deal could have raised tensions between Mr. Bilbrey and members of the trust’s board who opposed a sale.
The trust said Friday that Mr. Bilbrey “guided the Hershey Co. with sound judgment and good business sense.” A Hershey spokeswoman said Mr. Bilbrey chose to leave his job and wasn't under pressure from the trust.
“While there is never a best time for a leadership transition, I do believe now is the right time to start the process,” Mr. Bilbrey wrote in an email to Hershey employees Friday.
But the timing of his departure comes as the Pennsylvania-based chocolatier attempts to evolve into a more diversified snack company and the trust’s board looks to avoid extra attention, months after state regulators concluded an investigation into their handling of Hershey dividends.
Hershey’s disbursements and the trust’s other investments generate billions of dollars in revenue for a boarding school for poor children in Hershey, Pa., as well as other charitable endeavors. The Pennsylvania Attorney General this year investigated whether the trust’s board members were receiving excessive compensation or ignoring conflicts of interest over some of the trust’s beneficiaries.
The Attorney General and the trust reached a settlement in July, agreeing to make governance changes including the resignation of several board members. James Nevels,who agreed to step down from the trust at the end of the year, has sat on the trust board and the Hershey board since 2007. Hershey said Friday that he won’t stand for re-election on the company’s board either.
The trust could install one of its current board members to fill Mr. Nevels’s spot as a company director. Back in 2007, the trust installed eight of its own picks as Hershey directors, flexing its muscles in front of an new, incoming CEO.
The Wall Street Journal has reported that disagreements with the trust contributed to the departure of Hershey’s two previous CEOs.
David J. West stepped down in 2011, in part over a disagreement with the trust over whether to bid for Cadbury PLC. Mr. West’s predecessor, Richard Lenny, stepped down in 2007 after multiple clashes with the trust’s board. In one instance, the trust blocked a potential deal that Mr. Lenny pursued with Wm Wrigley Jr. Co. in 2002 after the state attorney general fought against it.
Both Mr. West and Mr. Lenny left their posts within three months of their announced departure.
Mr. Bilbrey, who joined Hershey from Danone in 2003 and replaced Mr. West as chief executive in 2011, encouraged the negotiations with Mondelez that began earlier this year. He said in a letter to employees that Hershey needs to move “beyond core confection into broader snacking categories.”
Hershey didn’t make Mr. Bilbrey available for comment on Friday. “Luckily for me at least, July is a long way away, and until then I will remain involved with the business with the support of a great management team,” he wrote in his email to Hershey employees.
Some corporate-governance specialists questioned why he would announce his exit so far in advance if his family’s concerns were pressing.
Roger Dennis, dean of Drexel University’s law school, said he suspected conflicts within the trust crimped Mr. Bilbrey’s effectiveness in the boardroom.
“A CEO’s ability to be a strategic leader of the entity has to be difficult in this context,’’ Mr. Dennis said.
Edward Jones analyst Jack Russo said the change in leadership doesn’t make a sale of the company more likely. Some people view Hershey as unsalable because of the trust’s strong control and because any deal would also essentially require approval from Pennsylvania’s attorney general.
Hershey said it would review internal and external candidates for chief executive. Industry analysts expect Hershey’s Chief Operating Officer and head of North America Michele Buck to be the leading contender.
Ms. Buck, who joined Hershey in 2005, has more than two decades of experience in branding and marketing at Frito Lay, Kraft, Nabisco and Hershey. Hershey promoted Ms. Buck to chief operating officer in June, adding Hershey’s operations in Central and South America to her responsibilities.
Mr. Bilbrey’s departure also reflects challenging times for candy makers. Chocolate and candy sales in the U.S. are under pressure from consumers’ turn toward healthier foods. Hershey recently introduced dried meat bars, made from dried meats and a combination of other ingredients such as mangos, cranberries and quinoa.
The company on Friday reaffirmed its full year outlook and plans to report quarterly earnings later this month. Shares of the company rose 78 cents to $96.43; before Friday, the stock had gained 1.4% over the past year.
-
Hershey begins CEO search as Bilbrey announces retirement (video)
Oct 14, 2016 | Reuters
By Greog Roumelioits and Lauren Hirsch
Hershey Co, the U.S. chocolate maker that Oreo cookie-maker Mondelez International Inc tried to acquire earlier this year, said on Friday that Chief Executive John Bilbrey would retire from his post on July 1.
The move comes less than three months after the charitable trust that controls Hershey reached a major reform agreement with its overseer, the Pennsylvania attorney general's office, raising questions about the trust's plans for the company.
The selection of the new CEO could determine not just the company's financial performance, but also whether the trust will continue to rely on Hershey as its main asset. About two-thirds of the trust's $12 billion in assets are in Hershey stock.
During Bilbrey's five-year tenure as CEO, Hershey doubled its market value to $20 billion, improved its profit margins, and increased its market share in the United States to 31.3 percent from 28.3 percent. Hershey also began to diversify beyond its core confectionary business into other types of snacks.
The Kisses chocolate maker said on Friday it appointed a special committee to search for a new CEO. The committee will be led by Pamela Arway, chairwoman of the board's governance committee, helped by executive search firm Egon Zehnder.
The committee is considering internal and external candidates for the CEO job, and Hershey Chief Operating Officer Michele Buck is one of the contenders, according to people familiar with the matter who asked not to be identified discussing confidential deliberations.
FAMILY TIME
Bilbrey will continue as non-executive chairman of the board following his retirement as president and CEO, Hershey said. The company also maintained its full-year earnings outlook.
Reuters reported exclusively on Thursday that Bilbrey was preparing to step down by next summer.
"All of the decisions in my career have been made in consultation with my wife, Teresa, with the impact to our children and our family being paramount. And so it is with that in mind that I have shared with our board, and now you, my decision to retire next year in order to spend more time with my family and wonderful grandchildren who have faithfully and selflessly supported me for so long," Bilbrey wrote in a note to Hershey employees on Friday.
Bilbrey was named CEO of Hershey in 2011 after serving in various senior roles at the company since 2003. He added the position of chairman in 2015. Prior to Hershey, Bilbrey worked for 22 years at consumer company Procter & Gamble Co.
Following an initial spurned bid in June, Mondelez CEO Irene Rosenfeld re-approached Bilbrey in August, indicating that Mondelez would be willing to offer $115 a share, or about $24.5 billion overall, Reuters reported at the time.
Hershey responded that it would not be willing to enter into deal negotiations for an offer of less than $125 per share, a source said at the time. The Hershey trust was set up by the company's founder over a century ago to fund and run a school for underprivileged children. It holds 81 percent of the company's voting stock, and so a sale is not possible without its approval. Following a dispute with the Pennsylvania attorney general over its governance policy, the trust in July agreed to expand its board to 13 members from 10, and for five members to resign by the end of the year.
With one trustee having resigned shortly before that agreement, that leaves a total of nine openings.
"Everybody wants clarity. The more ambiguity there is about a situation, the more difficult it is to recruit into it," said Peter Crist, chairman of recruiting firm Crist Kolder Associates, referring to the impact the turnover at the Hershey trust will have on the Hershey CEO search. Even if the trust does decide to explore a sale of Hershey, the attorney general can thwart such plans.
On Friday, one of the people who agreed to resign from the trust's board by the end of the year, James Nevels, said he would not stand for re-election on Hershey's board in 2017. Nevels currently serves as Hershey's lead independent board director.
View video clip here: http://www.reuters.com/article/us-hershey-ceo-idUSKCN12E04D
-
Oct 17, 2016 | Powder & Bulk Solids
The Hershey Co. announced that James E. Nevels, the company’s lead independent director, has informed the company that he does not intend to stand for re-election at the company’s 2017 Annual Meeting of Stockholders.
Nevels, 64, was elected to the Hershey Board of Directors in 2007 and served as non-executive chairman from 2009 until 2015. Nevels will continue to serve as lead independent director for the remainder of his term.
“It has been an honor to serve on the board of the greatest confectionery company in the world,” Nevels said. “I am fully confident that after nearly a decade of service, the time is right for me to move on to other pursuits. This decision provides the board with the continued opportunity to select diverse and experienced members who can help guide the company through its next phase of growth and consumer-centric brand building.”
“On behalf of the board of directors and the company, I want to express our sincere appreciation to Jim for his leadership, contributions and dedication to The Hershey Co.,” said J.P. Bilbrey, chairman, president and CEO of Hershey. “We have valued Jim’s perspective and insight over the years. Jim has been an important part of the company’s success and its reputation in the market as a company committed to bringing goodness to the world through its iconic brands, remarkable people, and community engagement.”
The company expects to hold its 2017 Annual Meeting of Stockholders on May 3, 2017. -
Hershey's CEO Announces Plan To Step Down From His Chocolate Throne
Oct 17, 2016 | Junior College
By Adam Carter
Bilbrey will step down on July 1, 2017. Some people view Hershey as unsalable because of the trust's strong control and because any deal would also essentially require approval from Pennsylvania's attorney general.
Hershey said Mondelez wasn't offering enough money for it iconic brands like Reese's peanut butter cups and chocolate Kisses.
The trust said Friday that Mr. Bilbrey "guided the Hershey Co. with sound judgment and good business sense". "And so it is with that in mind that I have shared with our board, and now you, my decision to retire next year in order to spend more time with my family and wonderful grandchildren who have faithfully and selflessly supported me for so long", Bilbrey wrote in a note toHershey employees on Friday.
He presided over a relatively calm period of the candy company - until this past summer, when Mondelez made an offer to buy Hershey. The Hershey trustwas set up by the company's founder over a century ago to fund and run a school for underprivileged children.
Edward Jones analyst Jack Russo said the change in leadership doesn't make a sale of the company more likely. The committee will review internal and external candidates with assistance from executive search firm Egon Zehnder. Even if the trust does decide to explore a sale of Hershey, the attorney general can thwart such plans. Industry analysts expect Hershey's North America President Michele Buck to be the leading contender. "Succession planning has always been a top priority for our board of directors, and we look forward to an orderly leadership transition".
At the time, Bilbrey was an executive vice president and COO. About two-thirds of its $12 billion in assets are in Hershey stock. Chocolate and candy sales in the US are under pressure from consumers' turn toward healthier foods.
In addition to announcing Mr. Bilbrey's pending retirement, the company reaffirmed its full-year 2016 outlook.
The Hershey Co., based in Hershey, Pa., is a global confectionary company that markets, sells and distributes its products under more than 80 brand names in 70 countries worldwide.
-
Oct 17, 2016 | Benchmark Monitor
Analyst’s Analysis on The Hershey Company (NYSE:HSY)
Number of analysts are eying on this stock, and after detailed observation they have given the stock mean target price of $104.54 while their mean recommendation is 3.10 (1=Buy, 5=sell). The consensus recommendation by Thomson Reuters Analysts is Hold for HSY and their mean rating for the stock is 3.12 on scale of 1-5.
The Hershey Company (NYSE:HSY) said Friday that Chief Executive John Bilbrey is planning to retire on July 1, 2017. The board has appointed a special committee to lead the search for a replacement, led by Pamela Arway, chair of its governance committee. The chocolate maker said it’s sticking with full-year 2016 guidance provided in its second-quarter earnings.
View clip here: http://www.benchmarkmonitor.com/2016/10/17/the-hershey-company-nysehsy-ceo-john-bilbrey-to-retire-in-july-2017-tesla-motors-inc-nasdaqtsla/
-
Hershey's CEO To Retire Soon; New Changes Underway?
Oct 16, 2016 | News Everday
By Joyce Vega
Hershey’s CEO, John P. Bilbrey is expected to resign from his position as a CEO of Hershey’s on July 1, 2017. After his resignation, he will keep a non-executive chairman position on Hershey's board.
Lancaster Online reports that John P. Bilbrey joined Hershey in the year of 2003, where in May 2011, he was promoted to president and CEO, succeeding David J. West. According to John P. Bilbrey, the soon to be former CEO of “Hershey” his work in the company has been the “highlight” of his career, but now, at the ripe age of 60, he wants to dedicate his time to his family and close ones.
CNBC shares data that John P. Bilbrey has earned a $10,8 million statement, in 2015, which in total includes $1,2 million in salary, $6,0 million in stock and stock options, and $1.0 million in incentive plan payments.
Hershey is the U.S.’s largest producer of candy and sugar products, which in 2015 have managed to reach sales of $7.4 billion. This attracted the attention of the international conglomerate Mondelez.
This June, they tried to acquire the multi-billion candy producer, at $115 million per share, where Hershey’s response was that a sale will not occur at a price lower than $125 million per share.Another obstacle in an attempt of assimilation is the Hershey fund, which has been established by the company’s founder with the purpose of building and maintaining a school for the underprivileged.
Two thirds of the foundation’s $12 in assets is stock in the Hershey company, which means that a sale is impossible without the foundation’s permission and even if that happens, like back in 2002 when the foundation tried to sell company stock, the attorney general can always halt the sales procedure under civil protest and unrest, how it happened in the year of 2002.
-
Hershey board member to end term
Oct 17, 2016 | Central Penn Business Journal
By Joel Berg
The lead independent director on The Hershey Co. board said he will not seek re-election in 2017 after eight years of service to the chocolate company.
The director, James E. Nevels, will step down as of the company's next annual meeting, scheduled for May 3, according to a regulatory filing by the Derry Township-based company.
The filing said his departure was based on personal reasons, not any disagreements with the company and its operations, policies or practices.
Nevels also is on the board of the Hershey Trust Co. But under an agreement between the trust and the state Attorney General, he is expected to step down from that board by the end of this year.
Nevels, who had spent time as chairman of The Hershey Co.'s board, is the second high-level departure announced by the company over the last week. Hershey president and CEO John P. Bilbrey said last week he plans to retire in July.
Nevels, 64, joined the Hershey board in 2007 and served as non-executive chairman from 2009 to 2015.
“I am fully confident that after nearly a decade of service, the time is right for me to move on to other pursuits,” Nevels said in a statement. “This decision provides the board with the continued opportunity to select diverse and experienced members who can help guide the company through its next phase of growth and consumer-centric brand building.”
An attorney, Nevels is founder and chairman of The Swarthmore Group, an investment firm in Philadelphia.
-
Oct 14, 2016 | Tribune Live
Hershey Co. CEO John Bilbrey is stepping down from the iconic Pennsylvania company, even as the firm's controlling shareholder, the $12.5 billion Milton Hershey School for impoverished children, faces its own board-level turmoil.
Bilbrey, 60, told the Hershey Co. board Thursday that he will resign on July 1, 2017, and the company disclosed the decision Friday. News of the planned departure comes just weeks after Hershey rejected a takeover from rival Mondelez International Inc. Bilbrey will continue as non-executive chairman after he steps down as chief executive officer and president. The company board hired the executive-search firm Egon Zehnder to look for his replacement.
Erin Lash, senior equity analyst with Morningstar Inc., said on Friday the “most likely” internal candidate to succeed Bilbrey was Michele Buck, who was promoted to executive vice president and chief operating officer at the Hershey Co. in June.
“We still view it as highly unlikely that (Hershey) will pursue a big deal,” Lash said. She noted the need on the part of the 2,000-student Hershey School for the cash from Hershey Co. stock dividends to run its educational programs. Debt to close a big acquisition could threaten that Hershey Co. dividend stream.
In a research note on Friday, UBS analyst Steven Strycula wrote that the Hershey Co. faces intensifying competition in the U.S. confection industry and must find a profitable distribution solution for its underperforming China business. Also he wrote in the report: “We believe Hershey needs to outline a more detailed go-forward strategy.”
Bilbrey, who joined the Hershey Co. in November 2003 and was compensated $10.8 million in 2015, is leaving a difficult situation.
Hershey declined a $23-billion offer from Mondelez in late August as other candy and food companies — facing shifting consumer tastes in a low-growth industry — are busy merging and consolidating operations on a global scale, leading its stock to plunge more than $15.
Mondelez initially bid $107 a share for Hershey stock and then reportedly boosted the offer to $115 a share. On Friday, Hershey stock closed at $96.47, up 82 cents.
Meanwhile, the board of the controlling shareholder in the Hershey chocolate company, the charitable trust that finances the Hershey School, is being reconstituted as part of a settlement with the Pennsylvania Attorney General's Office. The settlement was reached in late July. The investigation looked into compensation among board members, travel, governance, and board tenures.
Five of nine trust board members will resign by next December. Nine new members could join the trust board over the next 18 months, based on the attorney general's settlement. The trust has a voting control of 80 percent of the chocolate company.
The Hershey chocolate company is the biggest asset in the $12.5 billion trust that finances the school, one of the nation's richest child charities.
“Now is the right time to begin the process of handing over the reins as CEO as it will allow me to spend more time with my family and wonderful grandchildren,” Bilbrey said.
National Coverage
Full Text of Stories Below
Trade Coverage
Local Coverage
Add recipients
Suggested