The Hershey Company (HSY) AGM 2025 summary

Q&A with stakeholders

• Executive compensation is performance-based, with 89% of CEO pay and 78% of named executive officer pay at risk; the entire board approves the CEO's package.

• The LesserEvil acquisition aims to expand the better-for-you snacking portfolio and reach younger, diverse consumers, with plans to extend the brand beyond popcorn.

• DEI initiatives remain aligned with company values and legal compliance, with no recent changes to people-related programming.

• Product safety and regulatory compliance are prioritized, with proactive adaptation to ingredient regulations and ongoing natural coloring initiatives.

• Health and wellness trends, including GLP-1 drug adoption, are addressed through portfolio adaptation, low-sugar products, and a new partnership with VitaKey.

• Growth strategies include innovation, investment in chocolate, shelf optimization, seasonal execution, and M&A, targeting at least 2% net sales growth in 2025.

• Tariff impacts are managed through supply chain optimization, cost-saving measures, and advocacy for cocoa tariff exemptions, with new domestic manufacturing investments.

• Elevated cocoa costs are addressed via a transformation program, increased cost savings targets, technology investments, supply chain flexibility, and price increases.

• Leadership lessons emphasize bold, forward action and employee appreciation as key to value creation.

Overview of voting outcomes

• All 11 director nominees were elected for the coming year.

• Appointment of Ernst & Young LLP as independent auditors for 2025 was ratified.

• Named executive officer compensation was approved on a non-binding advisory basis.

• Amended and restated certificate of incorporation, granting stockholders the right to fill certain board vacancies, was approved.

Shareholder proposals

• No shareholder proposals have been approved in the past 20 years; recent board policy changes were based on recommendations from the largest shareholder.