Posted: 05/10/2025 07:39 am
The Hershey Company (NYSE: HSY) has been navigating a dynamic financial landscape in recent years, marked by a noteworthy compensation structure for its top executives. A detailed look into their compensation reveals both competitive practices and responses to broader industry influences.
Looking at recent compensation data, Mr. Bhatia, Senior Vice President and Chief Technology Officer, was awarded a total compensation of $3,634,416 in 2024, which includes a base salary of $725,000, a bonus of $500,000, and stock awards worth $1,870,098. Notably, the lack of option awards in this package underlines an emphasis on direct remuneration and stock awards for aligning executive incentives[^1^]. This approach reflects Hershey's strategic emphasis on rewarding performance through equity rather than derivatives.
Comparatively, in 2021, Ms. Riggs, then President of Salty Snacks and Chief Growth Officer, earned a total of $3,099,141 without any bonus component but carried significant stock awards of $1,285,178[^2^]. The consistent trend of substantial equity-based compensation across executives highlights Hershey's continued reliance on stock awards as a performance incentive tool.
The financial pressures from tariffs and high cocoa prices have been impacting the operational strategy at Hershey, as noted in recent news where tariffs could pose up to $100 million per quarter in costs if unmitigated[^3^]. These financial hurdles, coupled with a complex macroeconomic environment, have necessitated strategic financial offerings by Hershey, including the recent pricing of $2 billion in notes due between 2028 and 2035[^4^].
Despite these challenges, Hershey reported a steadiness in stock prices, with a recent high of $170.9 on the NYSE[^5^]. Nonetheless, economic uncertainties and pressures have led to a downgraded rating amid profitability concerns[^6^]. Executive compensation at Hershey seems to be insulated from immediate operational turbulences but is indicative of a broader retention and incentive strategy.
As Hershey navigates these volatile conditions, the specific alignment of executive compensation with long-term shareholder value creation through strategic use of stock awards, while managing operational expenses and risks, remains a pivotal focus.
[^1^]: https://www.sec.gov/Archives/edgar/data/47111/000004711125000035/0000047111-25-000035-index.htm
[^2^]: https://www.sec.gov/Archives/edgar/data/47111/000004711124000014/0000047111-24-000014-index.htm
[^3^]: https://www.marketwatch.com/story/hershey-using-every-lever-in-the-toolbox-to-reduce-impact-of-cocoa-tariff-3da08b69
[^4^]: https://www.sec.gov/Archives/edgar/data/47111/000004711122000023/0000047111-22-000023-index.htm
[^5^]: Market snapshot data provided
[^6^]: https://seekingalpha.com/article/4783427-hershey-stock-q1-tariffs-add-new-dimension-of-risk-downgrade-sell
