This excerpt taken from the HSY DEF 14A filed Mar 16, 2007.
We have not entered into employment agreements with any named executive officer other than Mr. Lenny. We entered into the employment agreement with Mr. Lenny in connection with his recruitment to the Company in 2001. Our willingness to enter into an employment agreement with Mr. Lenny was instrumental in our ability to attract him to Hershey, and it is an important part of our overall current compensation and incentive program for him.
We provide an Executive Benefits Protection Plan, or EBPP, for the named executive officers and other key management personnel. The terms of the plan generally provide that in the event the executives employment with the Company terminates within two years after a change in control of the Company, the executive is entitled to certain severance payments and benefits. The EBPP is intended to help us attract and retain qualified management employees and maintain a stable work environment in connection with a change in control.
Effective December 29, 2006, our Board of Directors approved amendments to the EBPP that generally reduced benefits to more closely align them with the benchmark of our high-performing financial peer group.
Our Board also approved amendments to Mr. Lennys employment agreement to delete the provision regarding a maximum annual bonus under the AIP, and conform to the benefit changes in the SERP and Deferred Compensation Plan.
See the discussion beginning on page 56 for information regarding potential payments due to the named executive officers in the event of termination of employment or a change in control.