Air Products' Board Showcases Strong Leadership, Governance, and Financial Growth Amid Rival Pressure

Air Products' Board of Directors Emphasizes Strong Leadership and Governance

In a recent communication, the Board of Directors of Air Products, listed on the NYSE under the ticker APD, reaffirmed its dedication to a well-structured CEO succession plan and high-quality candidates on its board. This statement comes amid scrutiny following advocacy from rival investment firms Mantle Ridge and D.E. Shaw, which have expressed concerns regarding Air Products' leadership decisions.

CEO Succession Plan Articulated

The Board has committed to a thoughtful succession strategy for the current CEO, Seifi Ghasemi. This plan was put in place well before the recent pressures from outside stakeholders and is designed to ensure a smooth transition of leadership. Air Products has pledged to announce the replacement for Mr. Ghasemi by March 31, 2025, along with the timeline associated with this change. This proactive measure aims to reassure shareholders of the company’s long-term strategic vision and stability.

Addressing Misinformation

While maintaining this focus on governance, the Board has also responded to claims made by Mantle Ridge. Initially praising Ghasemi, Mantle Ridge has shifted gears, casting doubts on his reputation through what Air Products defines as misinformation campaigns. Notably, the Board has accused Mantle Ridge's nominees of having questionable affiliations rather than the necessary qualifications. An example highlighted was the conduct of one of their nominees, Dennis Reilley, who allegedly mishandled confidential board information during his time at other public companies.

The Board emphasizes that none of Mantle Ridge's proposed candidates can match the qualifications of their current board members. They firmly believe that introducing any of these nominees could harm shareholder interests and the company’s governance structure.

Strong Financial Performance

The Air Products Board also spotlighted the organization's solid financial track record, urging shareholders to appreciate the company’s strategic and transparent financial reporting. With leading profit margins and significant shareholder value created—over $44 billion since 2014—the company's performance has been heralded as exemplary within the industrial gases sector. The Board's argument rests on consistent comparisons with industry peers, demonstrating that Air Products’ financial health remains robust.

Shareholder Engagement

The Board strongly encourages shareholders to vote exclusively for Air Products' slate of nominees, urging them to disregard any proxy cards received from Mantle Ridge, which they claim are not aligned with the company's mission or values. This call to action underscores the Board's commitment to protecting the long-term interests of its shareholders amidst external pressures.

About Air Products

With a rich history spanning over 80 years, Air Products has established itself as a leading player in the industrial gases market. The company serves multiple sectors, including refining, chemicals, and food, while also pioneering large-scale clean hydrogen projects that support the transition to sustainable energy solutions. For the fiscal year ending 2024, Air Products reported revenues of $12.1 billion, demonstrating its expansive operations in approximately 50 countries and a substantial market capitalization exceeding $65 billion.

The Board of Directors remains steadfast in its commitment to innovation, sustainability, and corporate responsibility—an ethos that guides Air Products towards addressing both customer needs and global challenges efficiently. To stay informed about their latest initiatives, stakeholders are encouraged to follow Air Products on various social media platforms including LinkedIn, X, Facebook, and Instagram.

Overall, Air Products exemplifies an organization focused on strategic governance, robust financial management, and unwavering shareholder engagement, even when faced with external pressures. This approach reflects a dedication to both immediate and long-term success in the industrial market.