Activist investor Mantle Ridge has garnered sufficient backing from shareholders of Air Products and Chemicals to secure multiple seats on the company’s board of directors, according to a report by Reuters citing two sources familiar with the matter.
While votes are still being tallied ahead of Air Products’s annual meeting on Thursday, the sources told Reuters that Mantle Ridge is on track to win three board seats. The final number, however, has yet to be confirmed.
This vote concludes a highly contested boardroom battle between Air Products’s veteran CEO Seifi Ghasemi and Paul Hilal, the Founder of Mantle Ridge. The activist investor, who previously played a key role in Ghasemi’s appointment to the board over a decade ago, is now advocating for significant changes at the company.
Mantle Ridge has pushed for a clear succession plan for Ghasemi, a shift in capital allocation strategy, and reduced investment in high-risk projects. The firm proposed four nominees for Air Products’s nine-member board, arguing that fresh perspectives are necessary for the company’s long-term success.
In response, Air Products defended its current trajectory, asserting that it is already progressing on a CEO succession plan. The company cautioned that adding Mantle Ridge nominees could disrupt its leadership stability and strategic direction.
Mantle Ridge’s campaign received a boost when three influential proxy advisory firms endorsed the election of at least three of its nominees. These firms argued that change was warranted to address strategic concerns at Air Products.
Norwegian sovereign wealth fund Norges Bank Investment Management and other major investors also announced their support for all four of Mantle Ridge’s proposed candidates, further strengthening the activist firm’s position.
Over a decade ago, Hilal played a pivotal role in reshaping the board at Air Products while working with hedge fund Pershing Square Capital Management, ultimately leading to Ghasemi’s appointment as CEO.
Since founding Mantle Ridge in 2016, Hilal has led successful campaigns at several major companies, including CSX, Aramark, and Dollar Tree, often resulting in swift leadership changes.
