Vale to limit new CEO profile to avoid political pressures
Once it has been decided that Vale’s CEO, Eduardo Bartolomeo, will remain in office until December 2024, a new stage in the succession of the mining company’s president has begun. The question now is whether the government will attempt again to exert pressure on the company to put forward a name of its choice. Although Vale’s governance will face yet another test, the noises that have arisen so far in the CEO succession—and there have been many—have led to a set of conditions that should restrict the federal government’s maneuverability on the issue.At the board meeting on Friday (8), which sealed Mr. Bartolomeo’s fate, the directors discussed in detail the characteristics that the new CEO will need to possess. "There are a lot of restrictions [on names], and it will be up to the board to manage this process," said sources familiar with the matter. The search will be for an executive with the freedom to act and the necessary skills for the job."The profile of the future CEO will have to be an executive who excels in all areas of mining and who communicates effectively with the authorities," said one source. Another source added, "The [company] board will oversee the process." That is expected to limit new political attacks on Vale.According to sources, some of the board members do not want names associated with companies owned by the current shareholders.As part of the company’s succession policy, it is now engaging an executive search firm. Once hired, the headhunter will compile a list of candidates. The initial list will be extensive and gradually narrowed down until the new CEO is selected. "It could start with a list of 10, which will then be narrowed down to a shortlist [from which the CEO will be chosen]," explained a source. Vale executives, including vice presidents, may be considered.The Vale board meeting, which determined the extension of Mr. Bartolomeo’s contract until December, went into the night. The final decision was made by majority vote rather than by consensus. In an evening statement, Vale announced that the board, in agreement with Mr. Bartolomeo, had decided to extend his current mandate—initially set to end on May 26—until December 31 and to initiate a new selection process.The proposal, opposed by two independent directors (José Penido and Paulo Hartung), also stipulated that Mr. Bartolomeo would assist in the transition to the new CEO and serve as a consultant to Vale until December 2025. Valor initially reported...
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