Air Products announces timeline for CEO departure, Neuberger supports dissident slate

Air Products and Chemicals gave a specific date for the departure of its CEO, while investors began voting for directors in an intensely contested boardroom fight.

The company announced that it would announce a new CEO by the end March. This person will replace Seifi Hasemi within three months after joining.

Air Products announced that it would split the roles between chairman and CEO and announce Ghasemi's retirement from the board. Ghasemi has been in charge of the company for the past decade.

Ghasemi is one of nine directors that the company, which has a market value of $70.7 billion, wants to win over investors at its annual meeting on Thursday. Mantle Ridge, an activist investor, is trying to convince shareholders to elect new directors.

Mantle Ridge says Air Products should create a succession plan to replace its 80-year-old CEO, reallocate its capital and reduce risky projects. Mantle Ridge proposed four candidates, including the founder of Air Products, Paul Hilal, and Dennis Reilley, a former executive in the industry.

Air Products responded by telling its shareholders that any Mantle Ridge nominee would "create extraordinary confusion" regarding the company's leadership and direction.

After the company announced its detailed timeline of when Ghasemi would exit, Neuberger Berman has said that it will vote for each nominee from Mantle Ridge. The investment firm said it was influenced by concerns over "strategic mistakes and capital allocation", as well as "a lack of a credible successor plan".

A spokesperson confirmed that Neuberger Berman holds approximately 770,000 shares, or a 0.35 percent stake, in Air Products. This makes it one of the top 50 shareholders, according to the spokesperson.

Investors were encouraged to support Mantle Ridge candidates by Institutional Shareholder Services (ISS), Glass Lewis, and Egan-Jones. Reporting by Svea Autumn-Bayliss and Tanay Dumal in New York; Editing and production by Vijay Kishore, Rod Nickel and Vijay Kishore

(source: Reuters)