HARRISBURG, Pa. (AP) – State regulators and a $12 billion trust established by the founder of chocolate maker Hershey to educate poor children have announced a deal to revamp the trust’s board and change its operating rules following reports about its lavish spending.
The deal, announced Friday, requires five members of the 10-member Hershey Trust to retire by the end of next year, puts new limits on how much board members will be paid and imposes limits on their expenses.
“The sole motivation is to make sure that trust does as well as it possibly can to educate these children who so desperately deserve it,” Democratic Attorney General Kathleen Kane said.
The agreement was filed in a courthouse 10 miles from the town, school and massive candy manufacturer named for company founder Milton S. Hershey, who died in 1945.
Board members Robert Cavanaugh, Joseph Senser and James Nevels will be off the board by January, followed a year later by the departures of James Mead and chairwoman Velma Redmond. Terms will be capped at 10 years, and board members must retire after age 75.