Source: Investing Published 09/01/2025, 01:21
Air Products board of directors today responded to the proposal to appoint MantleRidge’s preferred candidates as CEO and chairman, expressing concerns about their qualifications and past conduct.
The board criticized the proposed chairman, Dennis Riley, for being out of management for 18 years, noting the significant changes that have occurred in the industry since then. MantleRidge’s nominee for CEO, Eduardo Menezes, faced scrutiny for his lack of experience as a public company CEO and for overseeing only one area at his former company, Linde. Furthermore, MantleRidge faced questions for not nominating Menezes to the board, which indicated a lack of confidence in him without Riley’s support.
Additional doubts arose about MantleRidge’s claims regarding the candidates’ contributions to Linde’s shareholder return, pointing to Reilly’s departure from Linde in 2007 and Menezes’ departure in 2021. The board also highlighted ethical concerns surrounding Reilly, who allegedly leaked confidential information, leading to an insider trading scandal.
The statement also underscored the low profile of Mantle Ridge’s other nominees, Tracy McKibben and Andrew Evans, compared to Air Products’ new board nominees, Bhavesh V. Patel and Alfred Stern, who have extensive experience leading large, publicly traded industrial companies.
The board is urging shareholders to support Patel and Stern’s nominations at the 2025 annual meeting, which would result in the election of six of the nine new directors in the past five years. The move is seen as part of a strategy to ensure close oversight and maintain the company’s path to growth and value creation. Recent data from InvestingPro shows that the stock has returned 13.7% over the past six months, with relatively low price volatility. Investors looking for deeper insights into Air Products’ financial health, valuation metrics, and growth potential can access Pro’s comprehensive research report, available exclusively to InvestingPro subscribers. The company intends to continue its CEO selection process, promising to announce a new CEO by March 31, 2025.
This statement is based on a press release from Air Products and provides insight into the ongoing dialogue between the company’s board of directors and a group of active shareholders. Full details of the board’s evaluation and shareholder letter can be found in the company’s official statement.
In other recent news, Air Products and Chemicals, Inc. has seen significant corporate developments. The company reported a 13% increase in adjusted earnings per share for the fourth quarter of 2024 year over year, in line with its guidance. The company expects EPS growth of 6% to 9% for fiscal 2025, a forecast that remains intact despite the sale of its LNG business to Honeywell. Analysts at Mizuho and BMO Capital maintained their “outperform” ratings on Air Products, revising their price targets to $385 and $350, respectively, following the strong Q4 results and fiscal year guidance.
Investment firms Mantle Ridge LP and D.E. Shaw have voiced concerns about the company’s governance, particularly criticizing the handling of CEO succession planning. Both firms have proposed changes to the composition of the board of directors at the upcoming 2025 annual meeting. In response, Air Products has announced a structured CEO succession plan, with the intention of naming a new chairman and setting a timeline for the CEO transition by March 31, 2025.
In addition to these developments, Air Products continues to focus on the emerging clean hydrogen market. The company has multiple projects underway, including a 15-year contract to supply TotalEnergies with green hydrogen starting in 2030. The value of projects currently under construction is $11 billion, indicating a significant increase in ongoing projects. These are the latest developments in the company’s operations.
