#United States #New York #Glass Lewis #Air Products #Mantle Ridge

Glass Lewis Advocates for Mantle Ridge's Nominees at Air Products

In a significant development within the corporate governance landscape, Glass Lewis, a top independent proxy advisory firm, has recommended that shareholders of Air Products and Chemicals, Inc. support the election of four director nominees put forth by Mantle Ridge LP. These nominees—Andrew Evans, Paul Hilal, Tracy McKibben, and Dennis Reilley—have been characterized by Glass Lewis as seasoned and capable candidates who can effectuate necessary changes within the company’s board of directors.

The recommendation comes in light of Glass Lewis’ thorough assessment of Air Products, particularly its waning performance over the past several years, which they attribute to ineffective strategic initiatives and poor capital allocation practices. According to their analysis, the existing board has presided over a series of high-cost, low-visibility ventures that diverge sharply from the company's core competencies, signaling an urgent need for a leadership overhaul.

In a documented statement regarding the current state of Air Products, Glass Lewis remarked: “The case for change here is compelling. Following years of poor performance, we recognize Mantle Ridge has advanced a credible slate of candidates who appear well-suited to the challenge at hand.” This endorsement not only acknowledges the previous management's failures but also suggests that a shift in governance is paramount to restoring investor confidence and long-term viability.

Glass Lewis is particularly critical of the performance metrics provided by Air Products’ current management, stating that these seriously lack analytical robustness and fail to address shareholder concerns adequately. The firm pointed out that the current succession plan appears to leave CEO Seifi Ghasemi with undue influence, stalling fresh leadership and direction at the firm. They have called for shareholders to withhold votes for Ghasemi and other incumbent nominees, highlighting the need for a fresh perspective and accountability on the board.

Mantle Ridge, which holds a significant stake in Air Products valued at approximately $1.3 billion, has been advocating for these changes as part of its commitment to enhancing shareholder value. Their push for board diversification and improved strategic focus aligns with the broader sentiments echoed by Glass Lewis, particularly regarding the necessity of reforming governance structures and operational strategies that have thus far hindered Air Products from reaching its potential.

The 2025 Annual Meeting of Shareholders is set for January 23, 2025, and will offer Air Products investors a pivotal moment to shape the future direction of the company. At this important juncture, shareholders are encouraged to engage with the presented information, as it will have long-term implications for the firm and its valuation.

Moreover, the backdrop to this governance showdown underscores a larger narrative of shareholder activism, where investors increasingly seek to influence corporate governance to drive enhanced performance and transparency. The stakes are high, as shareholders of Air Products must decide whether to continue supporting a board characterized by operational missteps or to embrace a new direction proposed by Mantle Ridge’s nominees.

Further information on Mantle Ridge’s recommended nominees and the voting process can be found at www.RefreshingAirProducts.com. The dynamics surrounding this shareholder vote will likely serve as a bellwether for how similar corporate governance disputes might unfold in the future, as stakeholders place greater emphasis on accountability and performance in boardrooms across various sectors.