D.E. Shaw Group, an internationally recognized investment and technology development firm, recently issued an open letter to the Board of Directors at Air Products and Chemicals, Inc. (APD), expressing ongoing concerns regarding the process of CEO succession.
The letter highlights that Air Products’ CEO, Seifi Ghasemi, appears to exercise unchecked decision-making power, resulting in a high-risk approach to capital allocation and prolonged underperformance of the company’s share price when compared to industry benchmarks.
The investor further criticized the Board for not fulfilling its primary duties, thereby contributing significantly to the prolonged underperformance of the company’s stock over several years.
Moreover, the letter emphasized the Board’s inability to provide a definitive timeline for the transition of the CEO, despite Ghasemi being the second-oldest CEO among S&P 500 companies.
D.E. Shaw Group declared its intention to advocate for changes in the composition of the Board during Air Products’ 2025 annual meeting, implying that maintaining the current approach could continue to leave shareholders vulnerable to inadequate oversight.
