Hershey's New CEO Kirk Tanner Set to Earn $17M in First Year, Higher Than Predecessor Michele Buck.

Kirk Tanner, former CEO of Wendy's, is joining Hershey as CEO, with a potential total compensation of over $17 million in his first year. This is higher than his predecessor Michele Buck's total compensation of $11.9 million in 2024. Tanner's base salary at Hershey is $1.25 million, and he is eligible for a cash incentive award, restricted stock units, and performance stock units, in addition to an annual equity-based compensation award of up to $9 million.

Kirk Tanner, the former CEO of Wendy's, is set to take over as CEO of The Hershey Company (NYSE: HSY) starting August 18, 2025. Tanner's appointment comes after Michele Buck's retirement, who had been CEO for over seven years. Tanner's total compensation package at Hershey is expected to be over $17 million in his first year, which is notably higher than Michele Buck's total compensation of $11.9 million in 2024 [1].

Tanner's base salary at Hershey is $1.25 million, and he is eligible for various bonuses and stock awards. He will receive a cash incentive award targeted at 180% of his base salary, a restricted stock unit award worth $7 million, a performance stock unit worth $4 million as a sign-on bonus, and an annual equity-based compensation award of up to $9 million [1]. Additionally, he will receive pro-rata stock worth $3.4 million. These stock awards will vest over a three-year period.

Tanner's extensive experience at PepsiCo and Wendy's is expected to bring valuable insights and strategies to Hershey. His tenure at Wendy's, while brief, saw the introduction of innovative menu items like the chicken sandwich and Takis fries, which, although talked about, did not significantly boost sales. Wendy's has been facing challenges with sales and profit outlook for 2025, with shares down 30% year to date [1].

Hershey, on the other hand, has shown resilience with a 10% price increase over the last quarter. The appointment of Tanner is seen as a strategic move to navigate higher tariff-related costs and persistently high cocoa prices. His experience in pricing and productivity strategies could help mitigate these challenges [2].

Investors should note that Hershey's stock performance has been mixed, with a 53.93% total return over the past five years but recent earnings under pressure. The introduction of new products like the ONE x Hershey's protein bar and innovations in the Reese's lineup could potentially boost revenue and earnings forecasts [2].

In conclusion, Kirk Tanner's appointment as CEO of Hershey comes with a substantial compensation package and high expectations. His experience at PepsiCo and Wendy's could be beneficial in steering Hershey through current challenges. However, investors should assess whether anticipated revenue growth and profit margin preservation align sufficiently with the existing share valuation.

References:
[1] https://finance.yahoo.com/news/does-hershey-ceo-salary-compare-150537659.html
[2] https://simplywall.st/stocks/us/food-beverage-tobacco/nyse-hsy/hershey/news/hershey-nysehsy-appoints-former-pepsico-executive-kirk-tanne