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BUSINESS NEWS KLAUS KLEINFELD STEPS DOWN AS CHAIR AND CEO OF ARCONIC Arconic announced that Klaus Kleinfeld, by mutual agreement with the Arconic board of directors, has stepped down as chair and CEO of Arconic and has resigned as a board member. David Hess, a current board member, has been appointed as interim CEO of Arconic and will remain on the board. Patricia Russo, Arconic’s current lead director, has been appointed as interim chair of the board. “The board is focused on hiring a world-class CEO to lead Arconic into its next chapter. We are focused on ensuring a smooth leadership transition for our customers, employees, and many stakeholders,” said Russo. “The board is deeply grateful to Klaus Kleinfeld for his dedication and service as chair and CEO of Arconic, and previously of Alcoa Inc., and appreciates his assistance with this transition. Klaus led a complex and highly successful transformation of Alcoa Inc. that culminated in the launch of two strong, standalone companies – Alcoa Corporation and Arconic. Today, Arconic is a leading advanced manufacturer of highly engineered products with strong market positions.”

Kleinfeld said, “I have had the honor and the privilege of working with so many talented and dedicated colleagues at Alcoa Inc. and now at Arconic. Together we have accomplished a lot. Today, Arconic is well positioned for the next phase. I am committed to supporting David and the board through this transition phase.” Russo continued, “We are fortunate to have a proven leader of David Hess’ caliber to step into the CEO role on an interim basis while the board conducts its search process for a permanent CEO. We are confident that David’s abilities and experience will ensure a smooth transition for the benefit of all of our stakeholders.” Hess said, “I look forward to working closely with the board, senior leadership team, and our dedicated and hard-working employees. Klaus and the Arconic team have built a great company and over the coming months my focus will be on continuing to serve our customers seamlessly, and deliver for our shareholders.” Kleinfeld stepped down as chair and CEO by mutual agreement after the board learned that, without consultation with or authorization

by the board, he had sent a letter directly to a senior officer of Elliott Management that the board determined showed poor judgment. Importantly, this decision was not made in response to the proxy fight or Elliott Management’s criticisms of the company’s strategy, leadership, or performance and is not in any way related to the financials or records of the company. The board continues to believe that under Kleinfeld’s leadership, the company successfully executed a transformative vision and improved business performance amid a complex market environment, and the board reaffirms the strategy developed under Kleinfeld’s leadership and shared with our investors, customers and employees. Elliott Management’s central objective – a CEO change – has been realized at Arconic. With the completion of Arconic’s transformative separation transaction last November, the substantial refreshment of its board composition with seven of its twelve directors having joined the board since the beginning of last year, and now the departure of Kleinfeld as CEO and chair of the board, it is clear that the company has recently undergone a tremendous amount of change.

CONFERENCE CALL, from page 7

has been organic; however, that does not mean we’re not open to pursuing acquisitions if it’s the “right fit” for both Hargrove and other parties involved. Hargrove has seen significant growth in recent years. We’re constantly assessing client needs and how we can position ourselves to better serve them. Our most recent office ad- ditions have been Houston in 2014 and Beaumont in 2016. We also grow by expanding services that benefit our clients like controls and automation, commissioning and startup, EPC, and technical services. TZL: What’s the greatest challenge presented by growth? RH: As we continue to grow, we work hard to instill the Har- grove culture in our new teammates and maintain our high standards of quality and performance. It’s important to consistently tell the “Hargrove story” and constantly keep the pulse on these efforts to ensure the continued integrity of our culture and the expectation of outstanding quality and performance. Our culture is our holy grail – our culture is to us what roux is to gumbo. TZL: What’s your prediction for 2017 and for the next five years? RH: 2017 has started off strong and with the current oppor- tunities we’re seeing, we believe this will continue through- out the year and flow well into 2018. Long-term predictions are less certain, but we anticipate continued growth over the next five years and will make sure we are well positioned to take advantage of market expansions. However, know- ing the volatility of the market, we continue to assess our clients’ needs to manage the ebb and flow of changing con- ditions. Our team handles ambiguity well, and we’re always quick on our feet.

TZL: What’s the key benefit you give to your employees? Flex schedule, incentive compensation, 401(k), etc.? RH: Our teammates highly value the chance to be a part of Hargrove’s ownership. They appreciate the opportunity to impact the shareholder value as an ESOP (here we use TSOP the T is for “teammate”) participant and owner. “It’s important to consistently tell the ‘Hargrove story’ and constantly keep the pulse on these efforts to ensure the continued integrity of our culture and the expectation of outstanding quality and performance. Our culture is our holy grail – our culture is to us what roux is to gumbo.” TZL: How do you raise capital? RH: We primarily raise capital from traditional banking relationships. We also provide an opportunity for invest- ment from our teammates through our associate ownership structure. TZL: What’s your preferred strategy for growth, M&A or organic? Give us a synopsis of how your firm effected growth in the recent past. RH: Our preferred strategy for growth is whatever method will aid in the long-term success and growth of the company while preserving the Hargrove culture. Our growth method

THE ZWEIG LETTER May 29, 2017, ISSUE 1202

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