Jan 17 (Reuters) - Air Products and Chemicals ( APD ) is

separating the roles of CEO and chair, as it comes under

pressure from an activist investor to lay out a succession plan

for the top job.

The company will name a new president no later than March

31, and expects the transition to the new CEO to occur within

three months of the individual joining the company, it said.

Both the CEO and president positions are currently held by

Seifi Ghasemi, who has been at the helm for a decade.

The move comes at a time when activist investor Mantle Ridge

has called for a clear CEO succession plan for its CEO at the

company, changes in capital allocation and scaling back on risky

projects.

The activist investor also proposed electing its director

nominees to achieve these objectives, and recommended Eduardo

Menezes as the new CEO of the industrial gases company.

However, the company had warned the election of any Mantle

Ridge candidates could cause confusion about the direction and

leadership of the company.

Earlier this month, proxy advisory firms Glass Lewis

recommended that investors elect all of Mantle Ridge's board

candidates.

Investors will vote on Jan. 23 unless the sides reach a

compromise before then.

The company also said on Friday that Ghasemi will retire

from the board after the appointment.