Source: Adobe Stock/ alexlmx
Arconic Inc. said today that Klaus Kleinfeld has stepped down as chairman and chief executive officer, leaving the specialty metals company after heavy pressure from activist investor Elliott Management Corp.
Kleinfeld’s departure came after he sent an unauthorized letter to Elliott Management that Arconic’s board said showed poor judgement. The internal battle between Kleinfeld and Elliott had been going on ever since the company was created by a split with the commodity aluminum production half of what used to be Alcoa, Inc., that company is now Alcoa, Corp.
Kleinfeld was appointed CEO of Alcoa, Inc. in May 2008 and shepherded the combined company through the commodities down-cycle. Leaving with Arconic was supposed to be a path to consistently higher profits, without the threat of commodity cycles harming the bottom line. But, as we have noted before, Alcoa Corp. has been flying high along with all other commodity aluminum producers ever since while Arconic has not been able to take advantage of the higher price of commodity-grade products.
Pruitt-Led Obama Rewriting Coal Plant Emission Rules
The Trump administration is moving to rewrite Obama-era rules limiting water pollution from coal-fired power plants. Scott Pruitt , the administrator of the Environmental Protection Agency , sent a letter announcing his decision to a coalition of energy companies that lobbied against the 2015 water pollution regulations.
The EPA’s regulations would have required utilities, by next year, to cut the amounts of toxic heavy metals in the wastewater piped from their plants into rivers and lakes often used as sources of drinking water. Arsenic, lead and mercury and other potentially harmful contaminates leach from massive pits of waterlogged ash left behind after burning coal to generate electricity.
The Utility Water Act Group petitioned Pruitt last month to reverse course on the regulations, which they claim would result in plant closures and job losses. Pruitt responded Wednesday, saying he would delay compliance with the rule while EPA reconsiders the restrictions. EPA will also request that the U.S. Court of Appeals for the Fifth Circuit freeze ongoing lawsuits filed over the rules by energy companies.