Arconic allows activist investor to add board members
NEW YORK (AP) — Elliott Management will add three members to the board at Arconic, and one will have a say in naming the next CEO.
Elliott owns more than 13 percent in Arconic Inc. and has pushed for management changes, complaining of underperformance at the New York-based maker of aluminum parts for the aviation and automotive industries. Arconic was created after Alcoa Inc. was split in two last year.
As part of the agreement announced Monday, one of Elliott’s board members will also be added to the CEO search committee. And Elliott’s replacement choice — Former Spirit AeroSystems CEO Larry Lawson — will be considered.
The former CEO at the metals company, Klaus Kleinfeld, resigned abruptly last month after he sent a letter containing veiled threats to Elliott founder Paul Singer.
Arconic also said Monday that three of its own nominees will be added to the board, too.
Shares of Arconic Inc. closed up 5 cents to $27.63 Monday.
This story corrects the company name to Arconic on first reference.