Air Products to Add Two Independent Directors After Investors Question Strategy, Succession

— Jeff Ward, Lehigh Valley News Briefs

Air Products has added two independent directors as part of a “board refreshment” after investors have questioned the industrial-gas maker’s strategy and succession plans.

The Upper Macungie Township-based company plans to add Bob Patel and Alfred Stern at its 2025 shareholder meeting. David H.Y. Ho and Matthew H. Paull will not seek re-election, the company said in a statement.

Two investors with billion-dollar stakes in the maker of hydrogen, helium and other industrial gases have questioned the company’s strategy, use of capital and succession plan.

Seifi Ghasemi, who is chairman, chief executive and president, has been steering the company toward the production of “green hydrogen.” The green does not describe a color, but a process of making hydrogen from water without generating carbon emissions.

Carbon dioxide is a greenhouse gas that has been linked to climate change.

Ghasemi contends that hydrogen will be the fuel of the future, replacing fossil fuels in heavy industry and in heavy transportation.

The closing price of Air Products (NYSE:APD) was $317.10 on Friday, up $41 in the past three months. At Friday’s price, the company has a market capitalization of $70.5 billion.

Independent directors are board members who do not work for the company or hold a large stake in it.

Patel is former CEO of W.R. Grace and LyondellBasell, and former president of Standard Industries.

Stern is CEO and Executive Board Chairman of the OMV Group.

— Disclosure: I own shares in Air Products as part of a buy-and-hold strategy. I do not day-trade or purchase derivatives.