Caixa: appointments call into question the selection process for VPs – 04/17/2023 – Market

Employees of Caixa Econômica Federal question the selection process for vice presidents and point out that the instrument has been used only to endorse political choices.

Last month, the bank released the selection result for four vice-presidents. One of those chosen was Inês Magalhães, former Minister of Cities in the Dilma Rousseff (PT) government and former National Secretary for Housing between 2005 and 2016.

Although a selection process was opened in February with curriculum evaluation and business plan proposal, members of the government point out that the decision to name Inês for the housing area had been taken during the transition, in December.

According to reports, the former minister was chosen for the vice-presidency of housing —one of the main ones at the financial institution— given the importance given by the PT to the new Minha Casa Minha Vida, which largely passes through Caixa for its implementation.

The president of Fenae (National Federation of Caixa Econômica Federal Staff Associations), Sergio Takemoto, claims that there was no need to open a selection process to choose former minister Inês Magalhães, for example, and questions the lack of transparency.

“A person who has already been a minister has all the qualities to be vice president, there is no need for a selection process. It would be more honest to arrive and indicate the person, and not make a pretense to choose a person who is already defined”, he says.

“If it is a qualified person, who has already demonstrated that he has the capacity, I don’t see the need for a selection process. Just as the president chooses his ministers without a selection process, the company indicates the people it considers qualified”, he completes.

Caixa began a selection process to choose vice-presidents in 2018, during the Michel Temer (MDB) government, on the recommendation of the MPF (Federal Public Prosecutor’s Office) following allegations of corruption involving the bank.

Executives who worked at Caixa at the time claim that an external consultancy selected three people and forwarded the names to the board of directors, which interviewed the candidates and gave the final word on the chosen one.

Under the management of Maria Rita Serrano, however, Caixa gave up the participation of the consultancy company and left the selection to internal structures: the executive director of people, the eligibility committee and the board of directors.

Despite the recommendation of the Federal Public Prosecutor’s Office in 2018, the selection process only became mandatory in 2020 after former president Pedro Guimarães —exonerated after accusations of sexual and moral harassment— amended the company’s bylaws.

Employees of Caixa affirm, with reserve, that the selection not only did not prevent Guimarães from placing allies in the vice-presidencies, but was also used by the previous management to rebut criticism against the nominees.

Former bank directors and Caixa employees heard by the report claim that the BC (Central Bank) already imposes prerequisites for vice presidents, and that other public banks, such as Banco do Brasil and BNDES, do not carry out a selection process for the posts.

A Caixa employee who was a superintendent, director of the bank and director of one of the subsidiaries participated in the selection process for vice president this year and says that he only received a formal message thanking him for his application.

For him, Caixa could change the bylaws – which would only require the meeting of the board of directors and the calling of an extraordinary general meeting – instead of maintaining the selection process just to validate political appointments.

For the vice-presidency of government, the name that has been circulating since January is that of Marcelo Bomfim, former superintendent of Caixa and former president of BDMG (Banco do Desenvolvimento de Minas Gerais). He resigned from his role at BDMG in early February. The result of the selection has not yet been announced.

According to reports, former federal deputy Geraldo Magela, who coordinated President Luiz Inácio Lula da Silva’s (PT) campaign in the Federal District, had been nominated for the post by his brother, Romênio Pereira, PT’s Secretary of International Relations, but had the barred name.

Asked why it maintained a selection process even with names already decided, Caixa did not respond. The bank stated that “the selection of directors meets control parameters that go through all the governance provided for in the legislation that deals, among other topics, with requirements and prohibitions for the exercise of the position”.

With regard to external consultancy, Caixa pointed out that, according to its statute, “the participation of the external company is optional in the process of choosing the company’s directors”.

“Caixa has a people area specialized in the selection system, which ensures that humanized management aspects, in addition to technical skills, are highlighted in the selections of the bank’s leaders”, he added in a note.

According to the selection notice, vice-presidents of Caixa have annual remuneration of BRL 653,122.86 and an additional BRL 128,451.62 in benefits (food allowance, housing allowance, vacation, supplementary pension and health plan).