Mantle Ridge Pushes for Change in Air Products Leadership

Institutional Support for Change at Air Products

In a significant move for shareholders, Institutional Shareholder Services Inc. (ISS) has recommended Air Products and Chemicals, Inc. shareholders vote in favor of the Mantle Ridge nominees for the Board of Directors. This decision underscores the pressing need for revitalization within Air Products’ leadership. With growing concerns regarding the company's current governance, the backing from ISS indicates a larger consensus for a change in direction.

Need for a Fresh Approach to Board Leadership

ISS criticized the incumbent Board for a lack of effective oversight regarding succession planning. The current board's inability to propose a credible successor plan has raised alarms among investors. By recommending the election of Mantle Ridge nominees Andrew Evans, Paul Hilal, and Dennis Reilley, ISS believes a new chairman will facilitate the necessary reassessment of the leadership and appoint a successor for CEO Seifi Ghasemi.

Critiques of Current Board Performance

ISS’s analysis points to several failures within the Board, particularly regarding their handling of Air Products' strategic initiatives. The perceived inadequacies in the current leadership underscore the urgent need for fresh perspectives. The previous capital deployment strategy has led to declining returns, prompting shareholders to question the viability of ongoing projects and the company's direction.

Advocating for Mantle Ridge's Nominees

Mantle Ridge advocates that their proposed nominees, alongside the reconstituted Board, would better navigate the challenges faced by Air Products. Their vision emphasizes evaluating the performance of current projects and ensuring a solid succession plan for the next CEO. Moreover, Mantle Ridge expresses confidence in the ability of Evans, Hilal, and Reilley to enhance shareholder value over the long term.

Recognizing Qualifications of Mantle Ridge Nominees

The nominees from Mantle Ridge bring a wealth of experience and vision that could transform Air Products. Their backgrounds in capital-intensive industries provide assurance that they would be able to realign the company’s focus toward sustainable growth and strategic innovation. ISS has notably highlighted that the qualifications of these candidates not only match but exceed current Board members.

Implications for Air Products’ Future

With ISS's endorsement, the trajectory for Air Products could shift towards a more proactive and accountable governance structure. Should shareholders heed ISS’s advice and vote in favor of the Mantle Ridge nominees, the company may find itself better positioned to recover from its recent underperformance. This change is crucial for restoring investor confidence and initiating strategic recovery plans.

The Call for No Confidence in Incumbent Directors

Mantle Ridge urges shareholders to withhold their votes from certain incumbent nominees whom they believe are impediments to progress. The current executive leadership has been accused of extending its influence over the Board unduly, which hampers transparency and robust decision-making. Air Products’ stakeholders deserve effective representation that prioritizes their interests.

Conclusion: Shaping a New Era for Air Products

As Air Products approaches its Annual Meeting of Shareholders, the decisions made by the stakeholders will shape the company’s future direction profoundly. The endorsements by ISS reflect a growing sentiment that change is necessary for rejuvenating not just the company's governance, but its market performance as well. A vote for Mantle Ridge’s nominees could signal a new chapter for Air Products, steering it towards long-term sustainability and value creation.

Frequently Asked Questions

What is the significance of ISS recommending Mantle Ridge’s nominees?

ISS recommending Mantle Ridge’s nominees highlights the growing concerns regarding Air Products' current governance and underscores the demand for effective leadership changes within the company.

Who are the nominees from Mantle Ridge?

The nominees from Mantle Ridge include Andrew Evans, Paul Hilal, and Dennis Reilley, all with strong backgrounds in industry and governance.

Why is a leadership change important for Air Products?

A leadership change is crucial to address the company's underperformance and to revitalize its strategic direction, ensuring better returns for shareholders.

What challenges is Air Products currently facing?

Air Products faces challenges related to its capital allocation strategy, investor confidence, and the need for credible succession planning that aligns with its long-term goals.

How can shareholders influence the outcome of the nomination?

Shareholders can influence the outcome by voting on the proposed nominees during the upcoming Annual Meeting. Their votes will determine the direction of the Board and the company’s future.

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