Rueters is reporting a member of the Hershey Trust resigned, and shares of the company’s stock are once again seeing a sharp increase. Joan Steel reportedly resigned her position over the weekend, the fourth trust member in a year to resign. Executive Vice President John Estey was dismissed earlier this year after pleading guilty to wire fraud.
Just two weeks ago, news of a takeover bid by Modelez international, Inc. sent shares of Hershey Co soaring.
The Hershey Trust has been the subject of scrutiny for years. Earlier this year, a letter from the Attorney General’s Office cited violations of an agreement reached in 2013, specifically, that board members compensation was too high, violations of the conflict of interest policy, and a failure to elect new board members with specific professional expertise in issues pertaining to early childhood education and working with at-risk children.
Mondelez had reportedly offered $23 billion cash and stock offer. The Hershey Trust holds Hershey Trust, which holds about 8 percent of the company’s shares and 81 percent of its voting power.
