NEW YORK -- Aluminum company Alcoa Inc. on Wednesday named former Siemens AG Chief Executive Klaus Kleinfeld as president and chief operating officer, saying he will likely take over as CEO when Alain Belda retires.
The company did not say when Belda, who turned 64 in June, might step down in favor of the German-born Kleinfeld, 49.
Alcoa announced the appointment of Kleinfeld in a press release in the morning, saying only that the former Siemens president and CEO was "a key part of an orderly transition."
But in an afternoon filing with the U.S. Securities and Exchange Commission, Alcoa outlined terms of Kleinfeld's appointment at a base salary of $1.4 million.
Pittsburgh-based Alcoa's stock slipped on Wednesday's news, and in afternoon trading on the New York Stock Exchange was down $1.11, or 3.18 percent, at $33.75.
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The company said Kleinfeld is "expected to be offered the position of chief executive officer and chairman of the board upon the retirement of the current chief executive officer."
Kleinfeld will receive a signing bonus of $6.5 million when he begins his COO and president job at Alcoa on Oct. 1, the filing said.
"Someone who has managed such a multinational company (as Siemens) will also be in a good position to manage another multinational, like Alcoa," said Heiko Feber, an analyst at private German bank Bankhaus Lampe in Duesseldorf.
"I think that he will address the upcoming issues consistently, that he will be decisive and won't hesitate," he added. "And that's something that's important in this industry, where there are a lot of mergers and acquisitions going on."
But one industry expert was not so confident Kleinfeld would make a difference. "It's a strange appointment. Alcoa is partly an industrial company, but it's mainly a commodities company," said the expert, who requested anonymity.
"My initial view is that it doesn't inspire confidence. He's not an established name with a track record ... It's potentially another nail in Alcoa's coffin."
The expert said if Kleinfeld were coming in as CEO, he would be in a better position to call in advisers and look at a strategic review of the company.
Company watchers have speculated that Belda, who is a Brazilian citizen, would retire next year, although Alcoa has not commented on the issue.
Belda, chief executive officer since 1999, faced criticism after Alcoa failed in a $28.6 billion hostile bid to buy Alcan Inc. . There has also been speculation that Alcoa itself is a takeover target, although reports last month said BHP Billiton was no longer considering a move for Alcoa.
Belda has also been targeted by some investors frustrated by Alcoa's near-flat stock performance in recent years, despite posting record earnings last year as aluminum prices surged.
Peter Schiff, CEO of Euro Pacific Capital, which holds some Alcoa stock, said "some investors might be upset." But he noted that in 2000, Alcoa stock was around $20 and it was now around $35. "That's about a 70-percent gain and better than the Dow Jones or S&P in that time."
According to Alcoa, Kleinfeld will have full responsibility for all operating activities of the company. The position was created for Kleinfeld, who has been on Alcoa's board of directors since 2003.
Kleinfeld led Siemens for two years but announced in April he would leave the electronics conglomerate, citing uncertainty about his future with the company after the board postponed a decision on whether to extend his contract.
Siemens has been rocked by allegations that it disguised bribes as payments to consultants. Kleinfeld has not been suspected of taking part in any wrongdoing.
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