Glass Lewis recommends Air Merchandise buyers again all of Mantle Ridge’s board candidates

By Svea Herbst-Bayliss

NEW YORK (Reuters) -Proxy advisory agency Glass Lewis (JO:LEWJ) on Thursday really useful that Air Merchandise and Chemical compounds (NYSE:APD) buyers elect all 4 of Mantle Ridge’s board candidates, lending assist to the activist investor within the yr’s first large board problem.

Mantle Ridge argues the economic gases firm wants to put out a succession plan for its octogenarian CEO Seifi Ghasemi, who has served on the helm for a decade, allocate its capital otherwise and cut back on dangerous initiatives.

It stated its 4 candidates, together with the hedge fund’s founder, Paul Hilal, would guarantee better order on the board.

Buyers will vote on Jan. 23 except the perimeters attain a compromise earlier than then.

Glass Lewis wrote that Mantle Ridge “superior a extremely credible slate of candidates who seem nicely suited to the problem at hand.” It additionally stated the nomination follows years of “poor efficiency fueled by a spate of high-cost, low visibility strategic expeditions pointedly departing from the corporate’s core danger profile.”

The corporate stated it strongly disagreed with Glass Lewis’ “sloppily-compiled” view, noting that Mantle Ridge’s nominees would create a “destabilizing quantity of change” and take away related experience from the board.

“We consider following Glass Lewis could be value-destructive for shareholders,” the corporate stated in an announcement.

That is the second time Mantle Ridge’s Hilal has tangled with Air Merchandise. A decade in the past Pershing Sq. Capital Administration, the place Hilal was a accomplice, helped set up Ghasemi onto the corporate’s board earlier than he was elevated to CEO.

Hilal signaled early within the present struggle that he was working with former prime executives at Air Merchandise’ rival Linde (NYSE:LIN), together with Eduardo Menezes, whom the hedge fund supervisor recognized as a potential alternative for Ghasemi. Menezes shouldn’t be a proposed director candidate.

The corporate stated final yr it might exchange two administrators who’re retiring this yr and one of many newcomers could be Bhavesh “Bob” Patel, a former CEO of chemical firms W.R. Grace and LyondellBasell. Patel has been talked about as a potential alternative for Air Merchandise’ present CEO.

Glass Lewis is the primary proxy advisory agency to difficulty its advice. Buyers at the moment are ready for Institutional Shareholder Providers, Glass Lewis’ larger rival, to difficulty its report.