Hershey Foods (HSY)

What is the Company’s executive compensation program designed to reward?

We reward financial results. We link a significant amount of our executive officers’ pay to achievement of our financial goals. We use our Common Stock and performance stock units, or PSUs, for long-term compensation. If we achieve strong financial performance relative to our goals and our stock price appreciates, our executives will earn significant rewards. If our financial goals are not achieved or our stock price lags, compensation under these programs will be reduced or eliminated.

We also reward adherence to our core values. Employees at all levels of the organization, including executive officers, are evaluated for exemplifying core values of openness and candor, accountability, learning and growing, personal leadership, passion for winning, inclusion, integrity and teamwork. An executive officer’s performance rating can affect the level of his or her base salary or incentive compensation awards.

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What is the Company’s executive compensation program designed to reward?

We reward results. We link annual and long-term incentive program goals to our performance against annual financial objectives and our longer-term strategic financial goals. Hershey’s pay-for-performance compensation philosophy is based strictly upon this linkage between performance targets and individual accountability.

We also evaluate personal performance by reviewing short-term results and long-term sustainability. An individual’s tenure and time in position are not significant factors. Individual behavior consistent with our core values is recognized as being necessary for building and sustaining stockholder value over the long term. Employees at all levels of the organization, including executive officers, are evaluated and compensated for exemplifying core values of openness and candor, accountability, learning and growing, personal leadership, passion for winning, inclusion, integrity and teamwork.