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What is Alcoa thinking?

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http://pittsburgh.bizjournals.com/pittsbur...tml?jst=b_ln_hl

So it's "principal office" is in New York, but its "operational office" is in Pittsburgh???

Pittsburgh will still count it as a Fortune 500 corporation then? Alain Belda needs a gut check if you ask me. What happened to the world where the CEO (which although pop culture views as all powerful is really just the servant of the board) starts calling the shots as to where and how HQers will be made.

I will hit the roof if Fortune comes out in 2007 and lists Alcoa in the NY column.

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We have the same situation here in Hartford. The Travelers Insurance Co. got "bought out" by St. Paul (another insurance company), but St. Paul was doing pretty crappy and Travelers basically bailed them out. Now the official headquarters is in St. Paul, Minn, but everything major they do is based in Hartford, yet Hartford can't claim the headquarters...

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Mad, good point for decades it was that way with USAirways here in Pittsburgh, when they merged with Piedmont back in the 70s the bulk of their operations remained in Pittsburgh yet the suits took office in suburban DC. Piedmont had its big operations center in Charlotte though the Pittsburgh ops were larger and for some time served as the true heart of USAirways.

Alcoa is a tad different in that only the CEO and a few other "moneyguys" are in NY. From what I see in the article the HQ will still be considered Pittsburgh first among equals. Still this could go the way of St. Paul, it'd be a shame if it did.

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60 employees in NY compared to the thousands in Pittsburgh...to me it doesn't really make a difference. The CEO's have been working out of New York for years, this just kind of kills the pressure to make them move to Pittsburgh

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This is crap. Why does a metal company have to be in Manhattan? It's not an industry that requires a presence in nYC, like others. A NYC office, if necessary, should be minimal, it shouldn't be unnecessarily disconnected with the rest of the corporate center, just so the big guys can party it up in NYC.

I realize that there are good reasons for being there, but it most certainly is not necessary for this to exist. I would love to have someone come to Alcoa and tell the us and its stockholders that will save a lot of money by ending its lease in NYC.

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Tooluther, you are correct the heart of global ops will still be in Pittsburgh but I hope this is just considered a "long commute" for a few choice execs from Manhattan and not a USAirways model having major ops in Pittsburgh, and then later in Charlotte but the suits in DC. It looks like corporate will still be in Pittsburgh but it is disconcerting that the servant of the board can't at least live near his operations, take Consols decision to move closer to their mines and away from Pittsburgh. Alcoa needs to know that they are only as good as their workers and investors and start giving back to the city that made them great.

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Some people just think NYC is the end all and be all. I am not trying to insult NYC, of course, but it kind of pisses me off that some folks, like the Alcoa CEO apparently, think you are nothing if you are not there. He'd probably pull the same crap no matter what mid-sized city his company was based in.

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The dude that took over for O'Neill in 2001 or so apparently hates Pittsburgh... he used to spend every weekend in NYC even when he was still living in Shadyside.

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Alcoa moved its headquarters because of the new CEO, that's it. He is one of those international mover and shaker types who fancies himself a very very important man. He believes NYC is the only American City befitting his status. The general consensus around town is that this guy is a self-important idiot who cares more about traveling around the world acting like a celebrity than running the company.

It's too bad, Alcoa should have appointed someone with some loyalty!

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It really irritated me to read the PG article this morning about the CEO's thoughts on the matter. It basically says that they moved for his personal tastes. He moved a public corporation to a significantly more expensive market, for his personal tastes. What an ass. There are literally hundreds, if not thousands of opportunities for someone like him in NYC, without up rooting another city's executives.

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Here is the PG article:

http://www.post-gazette.com/pg/06058/661831.stm

What is amazing to me is (I think it was the Bizjournals) that had Alcoa's spokesperson say how this would not impact Pittsburgh at all, that the "corporate center" would still be located in Pgh.

I hope Fortune feels the same way when they talley the HQ count after 2006. The more and more I read about this the more I see that Alcoa can cloak it anyway they like, Alcoa has skipped out on us. Jobs and "research centers" are fine, but USAirways gave us the same lip 25 years ago and now they are pulling out the jobs and "maintance centers". I'm tired of the Chevrons (Gulf Oil), Fischer Scientifics, Viacom (Westinghouses), Marathon Oils, Pennzoil/QuakerStates, Rockwells, Lycos', Lexis/Nexis', and yes even U.S. Airways global HQ and other corporate HQs being ripped from this city.

What was interesting to me was how USAirways was considering (they may have done it) moving major operations and maintence to the state of Alabama, the reason? The chief of the Alabama pension fund (boy are those fun) decided to invest everybody's retirement in the state into USAirways--just like the teamsters bought power and influence with "pension funds" in the LV and AC casinos in the 50's, 60's and 70's so too is this civil servant from Montgomery!

What would the world be like if we had a guy like that in Harrisburg or a multi-county type of muni-county-state pension fund making sure that Pennsylvania employees OWNED a seat on the boards of these companies. There is no power in the world quite like having a seat with 9-15 others steering a multinational billion dollar corporation.

Just tired of the Gulf's and Westinghouse's, the Lycos etc. sitting down and realizing that Pittsburgh and Pennsylvania don't get a vote on anything they want to do. :(

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I think O'Connor is wrong in thinking that the move doesn't affect Pittsbrugh. Even if they keep their major operations in Pgh, their execs and many of their white collar workers will be in NYC and will only come to Pgh if they need to. That means fewer higher paying jobs which means a lower tax base.

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the papers make it sound like forbes will not count ALCOA as a Pittsburgh company for the 500 list. When you think about it I guess it makes sence. I mean, how many people work for wal mart but do so out side of Arkansas or wherever the hell they are based...

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Does the corporate office location matter??? He's an example for you....

Walt Disney employs over 50,000 people in Central Florida / Orlando area. Their corporate headquaters are in Los Angeles. Come donation time... Disney donates $50,000,000 in LA for a performing arts center and $1,000,000 in Orlando for an amphitheater.

Yes, I think it does matter.

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Orlando should be grateful that Disney built a park there and put that town on the map. Orlando was a small farming town until they came along. Alcoa started in Pittsburgh. I also have a hard time of putting something unsual as a them park emplyer in the same category. Disney is not the norm.

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This might be a bit of inside baseball for some, but all this talk of Disney brings up another black eye for Pittsburgh courtesy of AA. Although Fortune might very well judge the "principal office" as the HQ rather then the Pittsburgh "operations center", the Dow--all the more important when considering how financial king makers view your region--kicked out one-time Pittsburgh goliath (remember the famous mob boss statement to Congress in the 50's "we're bigger then U.S. Steel") at 600 Grant Street got knocked off the Dow 30 by Mickey Mouse in 1987. That's right folks the new service-economy America values the Diz Biz more then it does an integrated industrial/energy co.

Although Pittsburgh will have the PNCs, the Mellons, the Heinz's on the all important Fortune list, Alcoa (AA) is the last remaining Dow30 component between Detroit, New York and Charlotte. It would eventually be devastating if the Dow considered AA a New York company after this move, global money would not be picking us up on their radar much longer.

And to think a generation ago, USSteel, Westinghouse, Gulf Oil and Alcoa were almost 1/5th of the DowJones, now just 20 some years later Pittsburgh might be considered a globalmoney backwater without any representation in the daily big board.

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Orlando should be grateful that Disney built a park there and put that town on the map. Orlando was a small farming town until they came along. Alcoa started in Pittsburgh. I also have a hard time of putting something unsual as a them park emplyer in the same category. Disney is not the norm.

And Pittsburgh was a trading post before the steel industry came along. What's your point? Pittsburgh has been a big city for much longer, but Orlando and Pittsburgh are not much different in size now.

My point was to show how not having the headquarters in your city will make a difference even though a majority of the companies workforce may still be there.

All Mickey Mouse jokes aside.... Disney is a large entertainment company, they own Pixar, they own ABC, they have entertainment complexes and theme parks on both coasts, Hong Kong, Tokyo, and Paris. They own tens of thousands of hotel rooms and have convention complexes larger than most cities. Please don't equate it to Kennywood.

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