Exhibit 10.2
Compensation Summary
(As reported in The Hershey Company’s
Current Report on Form 8-K, filed February 22, 2006)
Base Salaries. On February 15, 2006, the Compensation and Executive Organization Committee
(“Committee”) of the Board of Directors of The Hershey Company (the “Company ) approved the base salaries
of the executive officers who will be named in the Company’s 2006 Proxy Statement (“Named Executive
Officers”) other than Richard H. Lenny, Chairman of the Board, President and Chief Executive Officer, and on
February 16, 2006, the Committee recommended to the Company’s independent directors as a group the base
salary for Mr. Lenny, as follows:
The independent directors as a group approved the recommended base salary for Mr. Lenny on
February 16, 2006. Base salaries are effective as of January 1, 2006.
2006 Annual Incentive Program (AIP) Target Goals. On February 15, 2006, the Committee
approved the target grants for a 2006 AIP award under the Company’s Key Employee Incentive Plan
(“Incentive Plan”) for executive officers other than Mr. Lenny, and on February 16, 2006, the Committee
recommended to the independent directors as a group a target grant for Mr. Lenny’s 2006 AIP award. For
executive officers other than Mr. Lenny, the final award is the product of the executive officer’s base salary, the
applicable target percentage and a performance score calculated as the sum of a corporate performance score
and an individual score. The corporate performance objectives for the Named Executive Officers other than Mr.
Lenny are based on the Company’s earnings per share-diluted, consolidated net sales and earnings before
interest and taxes (“EBIT”) margin. The range of the target percentages of base salary used in the 2006 AIP
target grants for the Named Executive Officers other than Mr. Lenny is 60% to 70%. For Mr. Lenny, the
Committee recommended to the independent directors that his final award be calculated on the basis of a
contingent target maximum gran