Seifi Ghasemi, CEO of Air Products, has been removed from the industrial gas giant’s Board of Directors, following mounting pressures from investment firms for a refresh.
Ghasemi, 80, joined the board in 2013 and was appointed as the company’s Chairman, President, and CEO in 2014. He extended his term at the top of the business until September 2028 last year.
At the time, it was said that, from 30th September 2024 and each year thereafter, the contract term would renew to be a five-year term unless either party terminates the agreement.
Read more: Air Products faces renewed scrutiny from DE Shaw over CEO succession
But for several months now, Air Products has faced ongoing scrutiny about its CEO succession plan from its investors. In September 2024, and then later in January 2025, global investment firm DE Shaw expressed its disappointment with Air Products’ failure to manage an effective CEO succession process.
It said lack of a succession plan meant that the board was failing at its responsibilities.
Read more: Air Products extends Ghasemi’s term as Chairman, President, and CEO
Air Products has said the board intends to promptly address various matters, including the reconstitution of committees, the appointment of a chair, and CEO succession planning.
Ghasemi remains CEO of Air Products.
Board departures and new appointments
Ghasemi is not the only one to leave the board, however. Casey Cogut, David Ho, Ed Monser, and Matthew Paull, will also step down.
Mantle Ridge, which called Air Products out for its “operational underperformance, capital allocation missteps, poor project execution, and succession planning failures,” managed to secure three seats on the new board.
Its board nominees Paul Hilal, Dennis Reilley and Andrew Evans have all been successful in securing a spot. Paul Hilal is the founder and CEO of Mantle Ridge, which holds a $1.3bn share in Air Products.
When Mantle Ridge proposed the new directors, Air Products initially opposed the nominations, raising concerns about their qualifications.
Specifically, the company said Reilley had not held a management position for 18 years. It added that he would be coming into a company and industry that have undergone tremendous change in the last two decades, raising concerns about the applicability of his experience to current industry challenges.
It further said that Evans’ credentials “pale in comparison to the experience of current Board directors and are inferior to the backgrounds of Air Products’ new independent director candidates.”
Air Products did not comment on Paul Hilal and his experience.
Air Products’ response
With the preliminary voting now confirmed, Air Products has accepted the new additions to its board and said it appreciates the dialogue it has had with its shareholders throughout the process.
“We welcome all our new directors and look forward to working together in the advancement of our Company. 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,” the company said in a statement.
