The D. E. Shaw Group Calls for Air Products and Chemicals to Address Longstanding Underperformance

Core Viewpoint - The D. E. Shaw group has called for significant changes in Air Products and Chemicals, Inc. to address its long-standing share underperformance and governance issues [1][4]. Group 1: Governance and Capital Allocation - The D. E. Shaw group emphasizes the need for a more rigorous capital allocation policy, proposing that future capital investments should be tied to offtake agreements [3]. - A new capital allocation framework is suggested, where Air Products' capital expenditures (CapEx) should not exceed the mid-teens as a percentage of revenue beyond fiscal year 2026 [3]. - The company is urged to refresh its Board with independent directors who have relevant experience in capital-intensive businesses [3]. Group 2: Succession Planning - The D. E. Shaw group insists on the establishment of a clear and credible CEO succession plan to enhance governance [3]. - The letter highlights the importance of restructuring executive compensation to align better with the company's strategy and performance [3]. Group 3: Engagement with the Board - The D. E. Shaw group expresses concern over the Board's lack of engagement and urgency in addressing the issues raised, noting that a follow-up meeting was abruptly canceled [4]. - The group remains open to constructive dialogue with the company to implement necessary changes for improving business and governance [4].