UPPER MACUNGIE TWP. — Air Products Chief Executive Officer Seifi Ghasemi is out as chairman of the board of the Fortune 500 company.
Shareholders voted not to re-elect him to the board Thursday during their annual meeting, capping a power struggle that was months in the making.
Ghasemi remains CEO for now.
“We appreciate the engagement and dialogue we have had with all our shareholders throughout this process and reiterate our commitment to delivering meaningful, long-term value.”
Air Products statement
Among the nine people winning seats on the board was Paul Hilal, founder and chief executive officer of the investment firm Mantle Ridge, which owns $1.3 billion of Air Products’ stock.
Mantle Ridge had pushed for new leadership for Air Products, an Upper Macungie Township-based global producer of industrial gases and clean energy products.
Mantle Ridge complained Air Products’ stock was consistently outperformed by its peers, hampering shareholder value.
Mantle Ridge also questioned the company’s “speculative ventures” in investing in clean hydrogen and renewable energy initiatives.
'Meaningful, long-term value'
Air Products issued a news release Thursday with preliminary voting results from the shareholders’ meeting.
It said Ghasemi — chairman, president and CEO since July 2014 — will continue in the interim as CEO.
“We welcome all our new directors and look forward to working together in the advancement of our Company,” the statement said.
“We thank our outgoing directors, Casey Cogut, Seifi Ghasemi, David Ho, Ed Monser, and Matthew Paull, for their dedication and years of service to Air Products.
“We appreciate the engagement and dialogue we have had with all our shareholders throughout this process and reiterate our commitment to delivering meaningful, long-term value.”
Succession plan
According to the company, final voting results will be filed in the coming days with the federal Securities and Exchange Commission.
Air Products said the new board intends to meet promptly to appoint a new chair and plan for the next CEO.
Besides Hilal, elected to the board based on preliminary results were:
- Tonit M. Calaway
- Lisa A. Davis
- Andrew Evans
- Jessica Trocchi Graziano
- Bhavesh V. (“Bob”) Patel
- Dennis Reilley
- Wayne T. Smith, and
- Alfred Stern
Air Products employs about 2,000 people in the Lehigh Valley.