Nevels named chairman of Hershey Co.

The multibillion-dollar trust that controls the Hershey Co. has consolidated its hold on the company by appointing one of its own representatives, Philadelphia money manager James Nevels, as nonexecutive board chairman.

Appointing a chairman is normal for companies with controlling shareholders, the Hershey Trust said in a statement on Monday's appointment that cited Ford, Wal-Mart and the Washington Post as models.

The Hershey Trust, which finances a school for disadvantaged children in central Pennsylvania, holds 80 percent of the voting control of the chocolate company. Nevels, 56, had been one of the three trust representatives on the Hershey Co. board. Nevels was not available yesterday for comment.

The trust directed a 2007 management shake-up of Hershey, which faces stiff competition from Mars Inc. and gourmet-chocolate companies. Hershey has outsourced candy production to Mexico, and some believe that the company could benefit in an economic downturn as consumers favor mass-market candy over gourmet fare.

Nevels, the politically connected founder of the Swarthmore Group Inc., is the Hershey Co.'s first African American chairman of the board. He also serves on the board of Tasty Baking Co., in Philadelphia.

David West, president and chief executive officer at Hershey, developed a relationship with Nevels when they served on the board of the Tasty Baking Co., the trust said in a statement.

Kenneth L. Wolfe, a former Hershey top executive, was brought out of retirement in late 2007 to head Hershey's board and regain some of the company's marketing momentum. The Hershey Trust asked that Wolfe not stand for reelection by shareholders, and Wolfe resigned from the board.

"Ken helped to restore stability to this great company, and in so doing helped to build a platform for future company success," said LeRoy S. Zimmerman, chairman of the trust.

Having a trust member as Hershey Co. board chairman is "consistent with the company's historic governance model," the Hershey Co. said in a statement.

But Hershey corporate documents show that the Hershey chief executive officer typically serves as chairman. A 2004 proxy statement says: "The CEO serves as chairman of the board. This serves the Company well, and the independent directors have many opportunities to have a significant influence on the structure and functioning of the board."

Neither the company nor the trust would comment about the separation of the CEO and chairman positions.