Reappointment of current CEO to presidency divides the board of directors of the mining company Vale

The confusion regarding the succession of command of the mining company Vale had another chapter last week, with the meeting of the board of directors, on Thursday (22) to discuss the accounting balance of the mining company. The discussion about the new CEO, which was not defined at the previous meeting, was among the pending issues, but no decision was made.

On Friday (23), Vale’s president, Eduardo Bartolomeo, said that he trusts the company’s board to decide on his reappointment to the position. “It’s not up to me to comment. I have confidence that the council is doing everything professionally and correctly”, declared Bartolomeo, according to the investigation. Power360.

The current president’s term ends in May. According to the company’s statutes, the decision on whether to continue or not should be known three months in advance. But the impasse has set in, with the council split at the last collegiate meeting on the matter, on February 15th.

Of the 13 councilors, six voted to reappoint Bartomoleo and six to begin the selection process for another name. The two representatives of Previ, the one nominated by Bradespar, two other independent directors and the workers’ representative voted against Bartolomeo’s reappointment. The other independents and Mitsui’s nominee voted to maintain the current CEO. Luís Henrique Guimarães, Cosan’s nominee on the board, abstained.

Background is attempted interference by the Lula government

The backdrop to the impasse is the resistance of the majority shareholder, Previ, Banco do Brasil’s pension fund, to the reappointment of the current CEO. With 8% of the shares, Previ is the only interference arm of the Luiz Inácio Lula da Silva (PT) government, which has been dissatisfied with Bartolomeo’s management and has repeatedly tried to place the former Finance Minister, Guido Mantega, as president. of the company.

After the negative repercussion on the market, the government backed down. Mantega announced to interlocutors that he would give up the presidency, although he was not invited to the position.

If the board decides to use another name selection process, Bartolomeo may still be included in a triple list drawn up by consultancy firms. headhunting, as determined by the company’s statutes. Mantega’s name, according to the assessment of economic agents, would hardly pass the consultancy selection criteria.

Even so, the government is still working for a name closer to Planalto and to place Mantega as a member of the company’s board of directors. To do this, one of Previ’s advisors would need to resign and Mantega’s name be endorsed by the board.