Under pressure from investors to boost returns, Johnson Matthey (JM) has appointed a new CFO and is searching for its next Chair as it recalibrates its hydrogen technologies business.
Former DS Smith finance boss Richard Pike has already started in a CFO ‘Designate’ role and will work alongside the firm’s existing CFO Stephen Oxley until March 31 to ensure an “orderly transition.”
Pike’s financial experience is expected to support JM’s transformation strategy, focused on cash generation, higher returns on capital and sustainable shareholder value.
JM has also started a search for its next Chair after Patrick Thomas, who has held the position for almost seven years, said he will not seek re-election and will step down from the board after the firm’s AGM in July.
“It is now the right time to hand over to a new Chair who can guide the company through the next phase of its strategy,” Thomas said.
The leadership changes follow JM announcing a CAPEX suspension in its hydrogen technologies business – focused on electrolyser and fuel cell technologies – after its largest shareholder demanded its de-risking or sale.
A letter from Standard Investments, which holds an 11% stake in JM, in December criticised JM’s hydrogen technologies’ operating losses and lack of clear path to profitability, among other calls for board reform and a focus on higher returns.
Read more: JM’s largest shareholder demands de-risking of hydrogen unit and board revamp
Last month, JM said it would reduce CAPEX in hydrogen technologies to “maintenance levels” of £5m ($6.2m) or less per year, despite having slashed spending in the business to just 10% of the group’s three-year CAPEX guidance in May 2024.
H2 View understands the firm’s blue hydrogen technologies, under its catalysts business, are unaffected by the changes.
JM also said it would form a Board investment committee to “reinforce both cash generation and disciplined and measured deployment of capital.
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