AN ACTIVIST investor in FTSE 250 firm Elementis has called for the removal of its chief executive as it becomes the latest shareholder to bemoan the chemicals group's "persistently weak" share price.

Gatemore Capital Management, which holds a 0.6 per cent stake in Elementis, said in a letter to chair John O'Higgins that it had seen "years of disappointing performance" since CEO Paul Waterman took the reins in 2016.

The investor called on Elementis' management to accelerate and confirm details around its $30m cost-cutting programme, replace Waterman and conduct a strategic review of the company's portfolio to make it more attractive for a strategic buyer.

Gatemore said recently-appointed non-executive director Heejae Chae should lead the search for Waterman's replacement.

In response, Elementis said that the board believed the best way to drive value would be through "a focus on delivering the substantial actions that are currently being progressed".

(c) 2024 City A.M., source Newspaper