Elliott added, “It is simply the latest debacle in a pattern of conduct in which the board has repeatedly excused, endorsed
and participated in Dr. Kleinfeld’s poor leadership and attempts to entrench himself and his allies on the board.”
Mr. Kleinfeld will be replaced as chief executive on an interim basis by David P. Hess,
a former top executive at United Technologies who joined Arconic’s board this year.
Yet just months later, Mr. Kleinfeld is out at Arconic, after mounting pressure from the big hedge fund Elliott Management
and a letter he sent in response without his board’s approval.
Ousted After Sending Unauthorized Letter to Hedge Fund -
By MICHAEL J. de la MERCEDAPRIL 17, 2017
As chief executive of Alcoa, Klaus Kleinfeld oversaw an effort to split the company in two.
The hedge fund argued that the current board had stood by Mr. Kleinfeld until the letter and showed no appetite for changing his strategy.
In its statement announcing his departure — a decision
that the company described as being made by mutual consent — Arconic said that Mr. Kleinfeld only showed “poor judgment” in sending the letter.