The most outstanding part about Vale SA (ADR) (NYSE:VALE) has been the dedication it has been showcasing in line with working to improve governance as well as closing a valuation gap with several fierce rivals. It will soon be embarking on the restructuring of its board and ownership.
A lot of people have been pressuring it to disclose the actual executive pay, but to this moment it still remains adamant for reasons best known to it. Over several months it has celebrating the step of successfully transitioning from the quasi-state-controlled miner to becoming an autonomous global member and player 0f Brazil’s corporate elite. But it is worth noting that the alignment to the global transparency standards won’t be moving as far as providing a breakdown of the remuneration.
It was recently that the board proceeded to invoke a 2010 court ruling which it deemed was targeted at giving protection to top officials from kidnappings. A section of the directors indicated their great opposition to the decision made in late February. Isabella Saboya and Sandra Guerra, both Vale’s new independent directors were making attempts for the compensation to be divulged but all that was in vain.
Focus shouldn’t be directed at Vale when it comes to outlining the company’s withholding particular pay details for bosses in a country that is apparently identified with pretty high crime levels not forgetting the issue of inequality.
CVM, a local securities regulator is calling upon the companies to cooperate in terms of unleashing their respective data on what they have been paying the top executives. On its own part, Novo Mercado has demanded for the same level of disclosure but of course the condition is if a company joins as a member this year. Reports indicate that Vale made its entry the previous year.
The president of the Sao Paulo-based Association of Capital Markets Investors Mauro Cunha takes the strong stand that any given company withholding the information has something to hide and isn’t committed to best practices of corporate governance. He is said to have made the statement via telephone.
