Vale advisor resigns from position and speaks of ‘evident and harmful’ political intervention

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José Luciano Duarte Penido spoke out against the succession process for the company’s current president, Eduardo Bartolomeo. He will remain in charge of the company until the end of this year. Vale’s board member, José Luciano Duarte Penido, resigned from his position on Monday (11) because he disagreed with the succession process of the company’s current president, Eduardo Bartolomeo. In a letter addressed to the president of the Board of Directors, Daniel Stieler, Penido says that the process has been manipulated and that it suffers “evident and harmful” political influence. “Despite respecting collegiate decisions, in my opinion the current succession process for Vale’s CEO has been conducted in a manipulated manner, does not serve the best interests of the company, and suffers evident and harmful political influence”, says the resignation letter to which the g1 had access. Penido further states that he no longer believes in the company’s “honesty of relevant shareholder principles” in fulfilling the objective of elevating Vale’s governance to the level of a corporation. “The Council formed a majority cemented by the specific interests of some shareholders represented there, some with very personal agendas and others with obvious conflicts of interest”, he states. The former Vale advisor continues: “The process has been operated by frequent, detailed and biased leaks to the press, in clear lack of commitment to confidentiality.” According to Penido, given this scenario, his stay as a member of the council “becomes ineffective, unpleasant and frustrating”. Vale said it will not comment on the letter. Impact of departure The Board of Directors is made up of shareholder representatives elected at a meeting, and is responsible for the company’s strategic decisions. At Vale, the board has 13 seats. Eight directors are considered independent, while the other four are representatives of reference shareholders (Previ, Bradespar, Mitsui), in addition to the employee representative. Thus, the impact of Penido’s departure is mainly political. At a time when the government is already having to deal with criticism of political interference, due to the non-payment of extraordinary dividends at Petrobras, another important company is going through a crisis that has accusations of Executive interference as a backdrop. Government signals that it may review decision to withhold extraordinary dividends from Petrobras Read also: Petrobras: understand the dividend controversy Government will ‘rotate’ to ‘oxygenate’ state-owned companies’ councils after impasse at Petrobras, says minister Minister says Petrobras can pay extraordinary dividends, but highlights: ‘Investors know that the government is the controller’ Succession of the current president Last Friday (8), Vale announced that the company’s current president would remain in office until December 31, 2024. Bartolomeo will support the process of transition for the new president, still to be defined, at the beginning of next year, and continues as a consultant for the company until December 31, 2025. “The definition of the new President of Vale must consider the attributes and profile necessary for the position facing the Company’s strategy and future challenges. The Board of Directors will have the support of an international standard company and the company will present its new President once the succession process is completed”, said the company, in a statement on Friday (8) . The change comes in the wake of the federal government’s move to place former Finance Minister, Guido Mantega, in charge of the company. The idea faced resistance from other shareholders. Today, Vale is a corporation, with no direct control from any shareholder. The government has a stake in the company through the pension plan for Banco do Brasil employees, Previ. The government also has a golden share, which gives veto power to the former state-owned company.

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