Several big shareholders in Arconic (ARNC) - Get Arconic, Inc. Report are calling for the removal of CEO Klaus Kleinfeld, the executive in charge of spinning off Alcoa (AA) - Get Alcoa Corp. Report into its own separate business in late 2016. Alcoa takes care of the aluminum mining and production business, while Arconic manufactures finished products for the automotive and aerospace industries.
"I believe there will be a serious challenge to Klaus Kleinfeld," TheStreet's Jim Cramer said from the floor of the New York Stock Exchange on Tuesday morning.
A number of larges shareholders are upset at the company's lower-than-expected results that have been coming out since before the split, The Wall Street Journal reported on Monday.
The deadline for nominating shareholder's to Arconic's board is Feb. 5 and a number of them may jump on that opportunity, Cramer noted. "There could be others [besides Elliot Management] that I think would leap to the floor in the Feb. 5 deadline to challenge management," he said.
While the split seems to be successful, some shareholders are still upset about "operational issues" under Kleinfeld, Cramer explained. "I look for a challenge there," he noted.
The push for him to be ousted comes ahead of Arconic's 2016 fourth quarter earnings report, due out after today's closing bell. This will be the first quarterly report released since the split.
The quarter could shape up to be a "good" one because the company has guided down and it owns 20% of Alcoa, which has "moved up big," Cramer added. "I think you want to be in it, not out of it.
(Arconic is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)