Vale SA (ADR)(NYSE:VALE) has stepped up the quest for a new CEO as Murilo Ferreira reported his departure, indicating measures by some top shareholders to protect the world’s number 1 iron producer firm from political interference.
The buzz
Earlier Vale reported Ferreira will step down from his CEO role after his term expires in May. In a securities filing, the company did not name a prospective replacement for Ferreira or offer details as to how this transition will occur.
The company’s controlling shareholders may pick one of Ferreira’s replacements to lead Vale’s transition into a firm with discrete share ownership. External candidates with initial experience at company are also under consideration.
Potential candidates comprise CFO Luciano Siani; EVP for human resources Clovis Torres and ferrous metals director Mr. Peter Poppinga.
Nelson Silva, an ex-executive of Vale who is now CSO at state-controlled oil company Petróleo Brasileiro SA is included in the list. Other outsiders comprise previous Vale executives Tito Martins and Jose Carlos Martins. The choice of top commander is vital to ensuring the success of a program that will phase out a twenty year controlling investor pact and merge company’s different classes of equity into a single one.
Ferreira gave no clue about who can be the new CEO of the firm. He reported that as far as he is concerned, he has no successor, he has not been updated who can be the new CEO, and, to be sincere, he has no clue who it might be.
Some top investors had proposed that Ferreira continue with the role for another year. The proposal was denied by Ferreira, whose age was approaching closer to the firm’s limit. Vale has a vision that they must have an age restriction of 65 years, and this guideline is very important for everyone.
