Hershey grants retention awards to top executives

HERSHEY, PA - The Hershey Company (NYSE:HSY), a $36.15 billion market cap confectionery giant, has disclosed the approval of special retention awards for three of its top executives, according to a recent 8-K filing with the Securities and Exchange Commission. The move comes as InvestingPro data shows 12 analysts have revised their earnings downwards for the upcoming period. On Monday, the Compensation and Human Capital Committee of Hershey’s Board of Directors finalized the grant of time-based restricted stock units (RSUs) to senior executives as an incentive to retain key leadership.

Steven E. Voskuil, Senior Vice President and Chief Financial Officer, received 30,507 RSUs, while Jason R. Reiman, Senior Vice President and Chief Supply Chain Officer, was awarded 15,254 RSUs. Deepak Bhatia, Senior Vice President and Chief Technology Officer, was granted 12,203 RSUs. These awards are contingent upon each executive’s continued employment with the company until March 19, 2027, but could vest earlier if employment is terminated by the company without cause or by the executive with good reason. The retention moves come as the company maintains its strong financial health, earning a "GREAT" overall score according to InvestingPro metrics.

The RSUs were granted under a Notice of Special Award of Restricted Stock Units (Retention Equity), which was also approved on Monday. The specific terms and conditions of the RSU Award Agreement were not detailed in the press release, but the form of the agreement was included as an exhibit to the 8-K filing.

The Hershey Company, headquartered in Hershey, PA, is a leading confectionery manufacturer known for its chocolate, sweets, mints, and other snacks. The company’s decision to issue retention awards reflects an ongoing effort to ensure the stability of its management team.

The information provided in this article is based on the details outlined in the SEC filing by The Hershey Company. The RSU Award Agreement is a legal document that outlines the terms of the equity awards and is filed with the SEC for transparency and regulatory compliance.

In other recent news, The Hershey Company has issued $2 billion in new debt notes, divided into four tranches with varying interest rates and maturities. This financial move is part of the company’s ongoing strategy to manage its capital structure effectively, with potential uses for the funds including refinancing existing debt and funding strategic investments. S&P Global Ratings assigned an ’A’ rating to Hershey’s proposed senior unsecured notes, maintaining a stable outlook for the company despite a challenging consumer environment and high cocoa prices. Meanwhile, Hershey reaffirmed its 2025 financial outlook at the CAGNY conference, projecting a 2% increase in net sales growth, though earnings per share are expected to decline significantly.

Analysts have also been active in updating their projections for Hershey. Citi analyst Thomas Palmer raised the price target for Hershey shares to $173, while maintaining a Neutral rating, citing an improving cost environment due to declining cocoa prices. Additionally, TD Cowen’s Robert Moskow increased the price target to $159 but kept a Hold rating, expressing caution due to potential pricing challenges and inflationary pressures. Hershey’s management has indicated that strategies such as pricing adjustments and productivity improvements will be crucial in navigating these challenges. These developments reflect the dynamic market conditions Hershey is navigating, with investors closely monitoring the company’s financial strategies and market responses.

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