The trust that controls ownership of Hershey (HSY) forced six directors on the public company’s board to leave. Another two independent directors decided to go with them. In matter of a day, they were all replaced.
The trust blamed the board for the company’s current sorry state. Quoted in The Wall Street Journal, it representative said the trust is "actively engaged in an ongoing process, the goal of which has been to ensure vigorous Company Board focus on resolving the Company’s current business challenges and on implementing new growth strategies."
The trust also recently replaced the company’s CEO.
The entire incident is a silly game made less silly by the fact that Hershey shares have dropped from almost $57 earlier this year to $41, near a 52-week low.
The heart of the matter is that the trust has enough power to have acted at any time. It did not. That cost the company’s other public shareholders dearly.
And, that is the shame of it.
Douglas A. McIntyre
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