Ingevity expands board, elects new chair and directors

Ingevity Corporation (NYSE:NGVT), a specialty chemicals and materials company with a market capitalization of $1.2 billion, announced significant changes to its board of directors on April 30, 2025. The company’s board approved an increase from nine to eleven members and elected Mr. David H. Li and Mr. F. David Segal to fill the newly created vacancies. Additionally, Mr. Bruce D. Hoechner was elected as the new Chair of the Board for a two-year term ending at the 2027 Annual Meeting of Stockholders. According to InvestingPro data, these changes come as the company’s stock has experienced significant volatility, with shares down over 21% in the past six months.

Mr. Li, 52, brings over 25 years of experience in the specialty materials industry and currently serves as Ingevity’s President and CEO since April 7, 2025. His past roles include CEO and President of CMC Materials, Inc., where he worked from 1998 until its sale in 2022. Mr. Segal, 55, has been appointed to the board according to a cooperation agreement dated March 30, 2025. His previous experience includes Vice President of Investment Excellence at International Paper Company (NYSE:IP) and Portfolio Manager of the Franklin Mutual Series Fund. The appointments come as Ingevity faces challenges, with revenue of $1.4 billion in the last twelve months and analysts expecting a return to profitability this year, according to InvestingPro forecasts.

Both Mr. Li and Mr. Segal will serve on Ingevity’s board until the 2026 Annual Meeting of Stockholders. Mr. Segal will also join the Audit Committee and Sustainability and Safety Committee of the board. As a sitting President and CEO, Mr. Li will not receive additional compensation for his service on the board, whereas Mr. Segal’s compensation will align with the company’s non-employee director compensation practices.

In addition to the board changes, Ingevity’s stockholders approved the 2025 Omnibus Incentive Plan during the Annual Meeting held on April 30, 2025. This plan had previously received board approval, subject to stockholder consent.

This news is based on a recent SEC filing by Ingevity Corporation.

In other recent news, Ingevity Corporation announced a record year for its Performance Materials segment, with sales and EBITDA margins exceeding 50% in 2024. The company attributed this growth to new pricing strategies and operational efficiencies, alongside increased demand for fuel-efficient vehicles. In addition, Ingevity is undergoing a strategic review of its business portfolio, focusing on higher growth opportunities, which is expected to conclude by the end of the year.

In a leadership update, David H. Li has been appointed as the new CEO and president, effective April 7, 2025, succeeding interim CEO Luis Fernandez-Moreno. BMO Capital Markets recently upgraded Ingevity’s stock rating from "Market Perform" to "Outperform" and raised the price target to $65, citing improved earnings projections and the involvement of activist investor Vision One as factors influencing this decision. Vision One has also reached a cooperation agreement with Ingevity, resulting in the appointment of F. David Segal to the Board of Directors.

The company has reported $84 million in savings from its repositioning actions in the Performance Chemicals segment, surpassing previous targets. Despite challenges, Ingevity aims to reduce its net leverage ratio and achieve $400 to $415 million in EBITDA by the end of 2025.

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