The Hershey Trust Company has a $12.3 billion endowment and an ownership stake in the Hershey Company. However, the company is facing a $23 billion takeover bid and a leaked internal memo, detailing allegations of insider trading and the threat of a “suicide parachute.” Furthermore, the company’s board was accused of caring more about a paycheck than disadvantaged children, the earmarked purpose of the trust. The company board was recently forced to adopt changes in order to stay out of legal trouble. The Article further details a history of corruption in the famed chocolate giant’s trust, and how it strikes a balance between the trust’s purpose and those working for it.
See David Segal, Back-Stabbing and Threats of a ‘Suicide Parachute’ at Hershey, NY Times, July 30, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
