BOSTON (Reuters) – Cruiser Capital Advisors stated on Monday it needs to switch 4 administrators at chemical firm Ashland Global Holdings, including the board chairman.
The New York-based hedge fund goals to take away Ashland Chief Executive Bill Wulfsohn from his place as board chair and can also be concentrating on three different administrators who’re members of the corporate’s governance and nominating committee.
“Should Bill Wulfsohn hold both the Chairman and CEO jobs?,” the hedge fund wrote in a letter on Monday. It stated Wulfsohn has been paid $43 million over 4 years whilst the corporate has missed operational targets and its inventory worth has faltered.
Ashland urged shareholders to disregard the hedge fund and vote for its slate at its Feb. annual assembly, arguing that it listens to buyers’ recommendations on board members and provides them when applicable.
A rising variety of buyers, including hedge funds, are flexing their muscle by pushing to take away board members. But concentrating on a board chairman continues to be a comparatively uncommon transfer, business analysts stated.
Cruiser, which owns a 2.5 % stake in Covington, Kentucky-based Ashland, has been pushing administration for months to enhance its margins. It stated once more on Monday that it thinks the corporate might be value greater than $125 a share if enhancements are made.
The inventory worth opened at $72.31 on Monday and has fallen 12.72 % within the final three months.
The two sides have additionally sparred over board members for a while.
Cruiser is urging buyers to elect Bill Joyce, Allen Spizzo, Carol Eicher and Pat Gottschalk to the board.
Ashland requested shareholders to re-elect all administrators, including Wulfsohn, and referred to as 2018 “a year of great progress for Ashland’s value creation plan.” It stated it’s including Craig Rogerson, chairman, president and chief government officer of Hexion, to its slate.
Reporting by Svea Herbst-Bayliss; Editing by Dan Grebler