AkzoNobel NV Chairman Antony Burgmans will step down next April, following the completion of his third term in office. The announcement comes after several attempts by activist shareholder Elliott Advisors to oust him from the board over his stand against a takeover battle by U.S. rival PPG Industries Inc. (GM March 24, p. 12; April 28, p. 15; May 12, p. 17). This week, following AkzoNobel’s worse-than-expected second-quarter profit figures, Elliott is reported to have called for a vote for the immediate removal of Burgmans, a move dismissed by the company.
While it is a requirement under Dutch regulations that a chairman cannot stand for more than three terms, Burgmans on July 25 said that “barring any exceptional circumstances,” he intended to retire as planned and in-line with the Dutch corporate governance code. He did not elaborate on what the exceptional circumstances might be. He said that a process is underway to identify a successor.
This will be the Dutch specialty and paintings and coatings manufacturer’s second loss of a top executive who steered the company through the PPG takeover battle. Last week, AkzoNobel announced that its CEO, Ton Büchner, had stepped down, effective immediately, due to health reasons (GM July 21, p. 24). Thierry Vanlancker, who was most recently head of AkzoNobel’s Specialty Chemicals division, was named as the new CEO.
AkzoNobel and PPG are in a six-month cooling off period that is set to expire in December, and analysts said a possible deal could be revived as new management takes over. The Dutch company has scheduled an extraordinary general meeting (EGM) for shareholders on Sept 8, but has limited voting to the appointment of new CEO Vanlancker. Still, a discussion regarding AkzoNobel’s response to PPG’s proposals in March and April is scheduled for the EGM, though with no voting rights. AkzoNobel on July 25 also announced the creation of a supervisory board committee for shareholder relations, among several other actions, aimed at improving shareholder relations.