Tootsie Roll Industries announces board changes

Tootsie Roll Industries Inc . (NYSE:TR), a well-established player in the confectionery sector with a market capitalization of $2.23 billion, has undergone changes in its leadership team, according to a recent 8-K filing with the Securities and Exchange Commission. On Monday, the company welcomed Michael Adam Chodos, 66, to its Board of Directors. Chodos, who has been running his own law practice since 1984, also brings experience from his previous roles as Chief Legal Officer and Corporate Secretary of Medsphere Systems Corporation and as General Counsel at Notarize, Inc.

Chodos’ appointment to the board includes roles on both the Audit and Compensation Committees, where his extensive background in corporate finance, governance, and compliance is expected to contribute to the company’s strategic direction and oversight.

This appointment coincides with the departure of Barre A. Seibert, who resigned from the Board of Directors on Sunday after two decades of service. Seibert’s exit from the board marks the end of a significant period of contribution to the company’s governance and strategic initiatives.

Tootsie Roll Industries, with its headquarters in Chicago, Illinois, has been a familiar name in the sugar and confectionery products industry. The company, which has a history dating back to 1896, is known for its iconic products such as Tootsie Rolls, Tootsie Pops, and Charms Blow Pops, among others. According to InvestingPro data, the company maintains a strong gross profit margin of nearly 34% and has maintained dividend payments for an impressive 54 consecutive years.

The announcement of these board changes comes as the company continues to navigate the competitive confectionery market, maintaining its commitment to quality and innovation in its product offerings. The changes in the board’s composition are part of the natural cycle of corporate governance, reflecting the company’s ongoing efforts to align its leadership with its strategic goals. InvestingPro analysis indicates the company maintains excellent financial health with a current ratio of 3.59, suggesting strong liquidity. InvestingPro subscribers have access to 6 additional key insights about Tootsie Roll’s financial position and growth prospects.

Investors and stakeholders of Tootsie Roll Industries can refer to the company’s 8-K filing for further details on the recent board changes. The information provided in this article is based on the company’s press release statement.

In other recent news, Tootsie Roll Industries Inc. disclosed an expected non-cash tax charge between $11 million and $12 million in the fourth quarter of 2024. This charge is due to a write-off of deferred tax assets related to the company’s nonqualified deferred compensation plans. The company’s Board of Directors made the decision, reversing a previous action from 2018, which aimed to maintain full income tax deductibility of certain deferred compensation amounts.

The Board found it unfeasible to secure tax deductions on all accrued deferred compensation due to interpretations of the Tax Cuts and Jobs Act by the IRS and growth in plan account balances. This anticipated charge will be reflected in Tootsie Roll’s annual report on Form 10-K for the fiscal year 2024. The company clarified that this write-off would not result in future cash expenditures, but it will affect the company’s ability to deduct certain deferred compensation payments against future taxable income. These are recent developments that investors should take into consideration.

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