Mr. Miller said in a statement, “We believe the governance improvements
and substantial infusion of new perspectives and talent into the board announced today — with highly qualified directors being drawn from both the Elliott and company cards — will successfully position Arconic to realize its immense potential.”
Arconic also signaled it was happy to have resolved the issue without more fighting.
On Friday, Arconic made a proposal to Dave Miller, a senior executive at Elliott who helped lead the proxy fight,
that included many of the terms that became part of the final settlement, two people briefed on the matter said.
Under the terms of the settlement, Elliott will receive three of the four board seats
that it had been seeking, with one of those directors being added to a committee searching for a new chief executive.
Arconic will add two directors of its own choosing: Ulrich R. Schmidt
and David P. Hess, the latter of whom took over as interim chief executive after Mr. Kleinfeld’s departure.
“We are pleased to have reached a constructive agreement with Elliott, our largest shareholder,
and look forward to working collaboratively with Elliott to enable Arconic to realize the full potential of its great businesses,” Arconic’s board said in a statement.
Among the concessions from each side: Elliott agreed to forgo the creation of an operating
committee of the board, while Mr. Hess’s position on the board was secured.