Air Products to split CEO, chair roles amid activist pressure

APD

(Reuters) - Air Products and Chemicals is separating the roles of CEO and chair, as it comes under pressure from an activist investor to lay out a succession plan for the top job.

The company will name a new president no later than March 31, and expects the transition to the new CEO to occur within three months of the individual joining the company, it said.

Both the CEO and president positions are currently held by Seifi Ghasemi, who has been at the helm for a decade.

The move comes at a time when activist investor Mantle Ridge has called for a clear CEO succession plan for its CEO at the company, changes in capital allocation and scaling back on risky projects.

The activist investor also proposed electing its director nominees to achieve these objectives, and recommended Eduardo Menezes as the new CEO of the industrial gases company.

However, the company had warned the election of any Mantle Ridge candidates could cause confusion about the direction and leadership of the company.

Earlier this month, proxy advisory firms Glass Lewis recommended that investors elect all of Mantle Ridge's board candidates.

Investors will vote on Jan. 23 unless the sides reach a compromise before then.

The company also said on Friday that Ghasemi will retire from the board after the appointment.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Vijay Kishore)