Air Products boss, Seifi Ghasemi has been ousted as Chair of the US industrial gas major after its shareholders elected board nominees from activist investor Mantle Ridge, but he will remain CEO for now.
The company’s preliminary voting results show Mantle Ridge boss Paul Hilal, who led the offensive against Air Products’ board, former Linde executive Dennis Reilley, and Andrew Evans were elected.
Mantle Ridge had publicly criticised Air Products’ strategy for its focus and high spending on clean hydrogen, as well as its succession plan for 81-year-old Ghasemi.
Read more:Air Products defends clean hydrogen vision amid investor push for overhaul
With a $15bn clean project pipeline, Mantle Ridge and other investors called for an overhaul of Air Products’ CAPEX limits to ensure greater accountability and efficiency.
Alongside Ghasemi, Ed Monser and Casey Cogut were evicted as Board members.
In a statement, Air Products said its board would “meet promptly” to address the appointment of a Chair and CEO succession planning.
“In the interim, Mr. Ghasemi will continue as the CEO of the company,” it read.
The activist investor group said Air Products had “dramatically underperformed” over the past five years as a “direct result of poor stewardship” from Ghasemi and the Board.
In recent weeks the industrial gas giant had urged shareholders to back its nominees, accusing Mantle Ridge of attempting to seize control of Air Products “without paying a control premium.”
Ghasemi had his contract as CEO extended to September 30, 2028. He joined Air Products’ Board in 2013 and was appointed Chairman, President and CEO in 2014.
The change of directorship at Air Products could see a significant steer away from its strategy to attempt to claim a first mover status in clean hydrogen, which had been characterised by heading up the build and offtake of the 2.2GW NEOM project.
Last year the firm sold its LNG business, with reports suggesting a further sale of its South Korean industrial gas business unit, as it endeavoured to double down on clean hydrogen.
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