Hershey Trust nears governance settlement with Pennsylvania AG: sources

(Reuters) - The board of the charitable trust that controls Hershey Co is nearing a resolution with the Pennsylvania Attorney General's office that would avoid a legal row in exchange for reforms on how it is run, people familiar with the matter said.

The agreement will impose 10-year term limits on trustees, the people said on Friday. Three trustees, Joseph Senser, Robert Cavanaugh and James Nevels, will have to step down by the end of the year, the people said.

Hershey Trust board Chairwoman Velma Redmond, who joined the trust in 2003, will stay on to ensure continuity, but will step down by the end of 2017, along with James Mead,, the sources added.

Caps on trustees' compensation are also part of the settlement, though these exclude salaries of trustees at Hershey Co and other affiliates, the people said. The Pennsylvania Attorney General's office will also be given a 30-day window to object to new trustees, the people added.

The sources asked not to be named because the negotiations have not yet been completed. The Pennsylvania Attorney General's office declined to comment.

"There is no final agreement but we have been having productive discussions with the AG’s office and hope that a final resolution will be reached very soon," said Kent Jarrell, a spokesman for the trust’s board.

(Reporting by Lauren Hirsch and Greg Roumeliotis in New York; Editing by David Gregorio)

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