Air Products splits CEO and chair roles in response to activist pressure

Air Products and Chemicals has separated the roles of chair and CEO as an activist investor is pressing the company to create a succession plan.

It said that the company would name a new President no later than 31 March and expected the transition of the new CEO within three months after the person joins the company.

Seifi Ghasemi is currently the CEO as well as the president of the company. He has held these positions for over a decade.

The move is made at a moment when activist investor Mantleridge has called for a clear succession plan for the CEO of its company, changes to capital allocation and a scaling back of risky projects.

The activist investor proposed that the company elect its nominees for directors to achieve their objectives and recommended Eduardo Menezes, as the new CEO.

The company warned that the election of Mantle Ridge candidates would cause confusion regarding the direction and leadership within the company.

Glass Lewis, a proxy advisory firm, recommended earlier this month that investors elect Mantle Ridge board members.

Investors will vote Jan. 23, unless both sides can reach a consensus before then.

The company said that Ghasemi would retire from the board following the appointment. (Reporting and editing by Vijay Kishore in Bengaluru, Tanay Dhumal from Bengaluru)

(source: Reuters)