By Ian Walker and Anthony O. Goriainoff

Johnson Matthey said its chairman will step down in the summer and has replaced its chief financial officer months after a major shareholder called for changes in its board and a review of the business.

The U.K. chemicals company said Monday that Chairman Patrick Thomas won't be seeking re-election at the annual general meeting on July 17, and that it has started the search for his replacement.

"It is now the right time to hand over to a new chair who can guide the company through the next phase of its strategy," Thomas said.

The company also said that it has appointed DS Smith's Richard Pike as its next chief financial officer from April 1, replacing Stephen Oxley who will step down March 31. Pike will join the board as CFO designate with immediate effect.

Pike was most recently group finance director at DS Smith, and has previously held the CFO role at Biffa and Boparan Holdings, the company said, adding that he brings strong financial leadership and a deep understanding of manufacturing and recycling industries.

In an open letter to the chairman on Dec. 16, U.S. investment firm Standard Investments urged Johnson Matthey to shake up its board of directors and derisk or sell its hydrogen-technologies business.

Standard Investments--which owned over 11% of the company's issued share capital--said that the board lacked the sense of urgency and strategic capabilities required to improve the company's performance and that it needed new voices to take swift action.

It also urged the board to hire advisors and launch a review of the company, including a partial or full sale of the business.

The company said at the time that it recognized the need to restore shareholder returns and that it would focus on improving its share-price performance, achieving solid capital discipline. and increasing cash flow.

It subsequently said on Jan. 27 that the company would halt investments into its loss-making hydrogen-technologies unit as it aims to further de-risk the business amid an uncertain market environment.

It said Monday that the board and nomination committee will continue to consider opportunities to add new directors to the board to reflect the group's transformation strategy.

Shares were up 10 pence, or 0.7%, at 14.32 pounds in early morning European trading. They are currently up 3.5% over the year to date but 4.7% lower over the past three months.

Write to Ian Walker at ian.walker@wsj.com and Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

February 10, 2025 04:21 ET (09:21 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.