Hershey Announces CEO Succession Plan

Rhea-AI Summary

The Hershey Company (NYSE: HSY) announced that Michele Buck, Chairman of the Board, President and CEO, will retire on June 30, 2026. Buck will maintain her current roles until a successor is appointed, after which she will transition to a senior advisor role until retirement. The Board has formed a special committee to search for the next CEO, considering both external and internal candidates.

Buck, who will complete 20 years with Hershey, has been credited with expanding the company into broader snacking categories, driving international growth, and building advanced capabilities. Under her leadership, Hershey developed one of the strongest snacking portfolios in the industry.

The company has reaffirmed its full-year 2024 financial outlook and will provide its 2025 outlook during its February earnings release.

Positive

• Planned and orderly CEO succession with 18-month transition period
• Reaffirmation of full-year 2024 financial outlook
• Structured leadership transition with Buck remaining as advisor

Negative

• Potential business strategy uncertainty during leadership transition
• Risk of organizational changes affecting company direction

Insights

Corporate Strategy Expert

The announcement of Michele Buck's planned retirement in June 2026 represents a critical transition point for Hershey. Under Buck's leadership, Hershey successfully expanded beyond its traditional chocolate business into broader snacking categories, implementing a diversification strategy that has strengthened the company's market position. The 18-month transition period indicates a well-planned succession process, which typically helps maintain operational stability and investor confidence.

Buck's tenure has been marked by strategic acquisitions and portfolio expansion, including the $1.2 billion Dot's Pretzels acquisition and the $921 million Lily's Sweets deal. The confirmation of 2024 guidance alongside this announcement is a tactical move to reassure investors about business continuity. The company's market cap of $32.8 billion reflects the substantial value creation under Buck's leadership, with the stock price having nearly doubled during her CEO tenure.

The board's decision to consider both internal and external candidates suggests a commitment to finding the best possible successor, though this could introduce some uncertainty about future strategic direction. The transition to a senior advisor role post-succession demonstrates a structured knowledge transfer approach, which is important for maintaining operational momentum.

Market Research Analyst

CEO transitions at companies of Hershey's size typically introduce market uncertainty, but several factors mitigate potential volatility here. First, the extended notice period provides ample time for a thorough search and smooth transition. Second, the reaffirmation of 2024 guidance signals business stability. Third, Buck's move to an advisory role post-succession ensures continuity of institutional knowledge.

Historical analysis of CEO transitions in consumer staples companies shows that well-planned successions with long lead times typically result in minimal stock price volatility. The snacking sector's consolidation trend and Hershey's strong market position (45% market share in U.S. chocolate) make this transition particularly important for industry dynamics. The next CEO will need to navigate increasing competition in better-for-you snacking categories and evolving consumer preferences, while maintaining Hershey's dominant position in traditional confectionery.

HERSHEY, Pa., Jan. 10, 2025 /PRNewswire/ -- The Hershey Company (NYSE: HSY) today announced that Michele Buck, Chairman of the Board of Directors, President and Chief Executive Officer, has informed the Board of her intention to retire from the Company effective June 30, 2026. Ms. Buck intends to serve in her existing roles until her successor is appointed, at which time she plans to resign from the Board and transition to a senior advisor role until her retirement.

The Board has appointed a special committee to direct the search for the Company's next CEO and will consider external and internal candidates, in partnership with a nationally recognized search firm.

"It has been the pinnacle of my career to lead Hershey, a truly one-of-a-kind company. Our team has created one of the strongest and most recognizable snacking portfolios in the industry and I am immensely proud of what we have accomplished," said Buck. "I am a firm believer that our long-term success is rooted in Hershey culture – the spirit of innovation has kept us at the forefront of new and changing trends to best serve our customers and consumers, made us a stronger partner for our communities and contributed to significant value creation for our shareholders. This year will be my 20^th at Hershey and as we embark on a new year, I believe now is the right time to formally activate our succession planning and begin the transition to Hershey's next leader."

Victor Crawford, Lead Independent Director of the Board, said, "The Board is grateful for Michele's vision and transformational leadership, not only over the past eight years as our CEO but for the past two decades. Michele has made innumerable marks on Hershey, including serving as the key architect of the Company's expansion into broader snacking categories, driving sustainable international growth and building advanced capabilities and growth platforms to evolve Hershey into a stronger and more diversified business. Succession planning is a matter the Board and Michele have been discussing and with Michele's continued guidance and leadership, we are confident we will execute a seamless transition."

Hershey reaffirms its previously announced full-year 2024 financial outlook and intends to provide its 2025 outlook in connection with its regularly scheduled earnings release in February.

About The Hershey Company

The Hershey Company is an industry-leading snacks company known for making more moments of goodness through its iconic brands, remarkable people and enduring commitment to doing the right thing for its people, planet, and communities. Hershey has more than 20,000 employees in the U.S. and worldwide who work daily to deliver delicious, high-quality products. Hershey has more than 90 brand names in approximately 80 countries that drive more than $11.2 billion in annual revenues, including Hershey's, Reese's, Kisses, Kit Kat®, Jolly Rancher, Twizzlers and Ice Breakers, and salty snacks including SkinnyPop, Pirate's Booty and Dot's Homestyle Pretzels.

For 130 years, Hershey has been committed to operating fairly, ethically and sustainably. The candy and snack maker's founder, Milton Hershey, created Milton Hershey School in 1909, and since then, Hershey has focused on helping children succeed through equitable access to education.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our business outlook and financial performance. Many of these forward-looking statements can be identified by the use of words such as "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "strategy," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would," among others. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the Company's securities. Factors that could cause results to differ materially include, but are not limited to: disruptions or inefficiencies in our supply chain due to the loss or disruption of essential manufacturing or supply elements or other factors; issues or concerns related to the quality and safety of our products, ingredients or packaging, human and workplace rights, and other environmental, social or governance matters; changes in raw material and other costs, along with the availability of adequate supplies of raw materials and the Company's ability to successfully hedge against volatility in raw material pricing; the Company's ability to successfully execute business continuity plans to address changes in consumer preferences and the broader economic and operating environment; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws and regulations, including taxes; political, economic, and/or financial market conditions, including with respect to inflation, rising interest rates, slower growth or recession, and other events beyond our control such as the impacts on the business arising from the conflict between Russia and Ukraine; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure and that of our customers and partners (including our suppliers); our ability to hire, engage and retain a talented global workforce, our ability to realize expected cost savings and operating efficiencies associated with strategic initiatives or restructuring programs; complications with the design, implementation or usage of our new enterprise resource planning system, including the ability to support post-implementation efforts and maintain enhancements, new features or modifications; and such other matters as discussed in our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, our Quarterly Report on Form 10-Q for the quarterly period ended September 29, 2024 and our other filings with the U.S. Securities and Exchange Commission from time to time. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

View original content to download multimedia:https://www.prnewswire.com/news-releases/hershey-announces-ceo-succession-plan-302348348.html

SOURCE The Hershey Company

FAQ

When will Michele Buck retire as Hershey (HSY) CEO?

Michele Buck will retire as Hershey's CEO on June 30, 2026.

What is Hershey's (HSY) CEO succession plan?

The Board has appointed a special committee to search for the next CEO, considering both internal and external candidates. Buck will remain in her current roles until a successor is appointed, then serve as senior advisor until retirement.

How long has Michele Buck been with Hershey (HSY)?

By her retirement in 2026, Michele Buck will have completed 20 years with Hershey.

What are Michele Buck's major achievements as Hershey (HSY) CEO?

Buck led Hershey's expansion into broader snacking categories, drove sustainable international growth, and built advanced capabilities and growth platforms, transforming Hershey into a stronger and more diversified business.

Will Hershey's (HSY) 2024 financial outlook change due to the CEO transition?

No, Hershey has reaffirmed its previously announced full-year 2024 financial outlook despite the upcoming CEO transition.