Air Products Faces Integrity Challenges: A Call for Change

Understanding the Recent Calls for Change at Air Products

Mantle Ridge has taken a bold step by issuing a shareholder letter that highlights critical concerns regarding Air Products and Chemicals, Inc. The organization, which owns approximately $1.3 billion in shares of Air Products, has pointed out various omissions and misleading statements from the company’s leadership. These concerns focus on performance and strategy, raising questions about the direction under current Chairman and CEO, Seifi Ghasemi.

The Impact of Leadership on Company Integrity

The letter emphasizes that shareholder-led board refreshment is essential for recovering from the damage inflicted during Ghasemi's tenure. Instances from Ghasemi's past experiences further support this claim, as other companies he has led faced significant integrity issues. The implications are clear: a leadership change could set the foundation for a more prosperous future for Air Products.

The Push for Qualified Board Members

In light of these pressing issues, Mantle Ridge is urging shareholders to elect four highly qualified director nominees. These nominees—Andrew Evans, Paul Hilal, Tracy McKibben, and Dennis Reilley—are seen as pivotal for resetting corporate culture and injecting new energy into the leadership team. Their expertise and fresh perspectives could prove invaluable in addressing the current challenges Air Products faces.

A Call to Action for Shareholders

Mantle Ridge is adamant that change begins with active shareholder participation. They are advocating for a unanimous vote using the BLUE proxy card to support their nominees while withholding votes for the current company nominees. This strategic move aims to send a clear message about the need for transformation in leadership.

Maintaining Focus on Long-Term Goals

The objective of these changes extends beyond immediate improvements. Mantle Ridge believes that, through effective leadership and governance, Air Products has the potential to restore its performance and deliver sustainable, long-term value for all stakeholders. The path ahead may be turbulent, but the convictions held by Mantle Ridge could pave the way for a brighter future.

The Background of Mantle Ridge

Founded in 2016, Mantle Ridge LP positions itself as a long-term owner-steward of the companies it engages with. Notably, it is not structured like a hedge fund and does not operate under short-term incentives. This long-view approach allows Mantle Ridge to nurture and cultivate enduring value, which is essential in the ever-evolving corporate landscape.

Previous Engagements and Impact

With experience engaging with entities like CSX Corporation and Dollar Tree, Mantle Ridge has a track record of some success in advocating for fundamental change. Such engagements showcase their commitment to aligning management practices with the expectations of shareholders for sustained performance improvement.

Conclusion: A New Chapter for Air Products

The call to action led by Mantle Ridge urges shareholders of Air Products to take notice and strive for leadership that exemplifies integrity, clarity, and ambition. A decisive vote can set forth a course of action that revitalizes not only the company but also its perception among investors and the market.

Frequently Asked Questions

What is Mantle Ridge's main concern regarding Air Products?

Mantle Ridge's main concern involves significant omissions and misleading statements made by Air Products' leadership about the company's performance and strategic direction.

Who are the nominees proposed by Mantle Ridge?

Mantle Ridge proposes four highly qualified nominees: Andrew Evans, Paul Hilal, Tracy McKibben, and Dennis Reilley.

What are shareholders being urged to do?

Shareholders are urged to vote the BLUE proxy card 'FOR' Mantle Ridge's nominees and 'WITHHOLD' votes for the current company nominees.

What is Mantle Ridge's investment philosophy?

Mantle Ridge focuses on long-term engagement, working constructively with company boards to create durable value for stakeholders.

Why is integrity important for Air Products?

Integrity in leadership fosters trust among investors and can directly influence the company’s performance, stability, and long-term value.

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