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Brazilian miner Vale’s decision this week to announce a new chief executive sought to avoid further market speculation over other potential candidates, the company’s chairman told Reuters on Tuesday.
Vale said on Monday that chief financial officer Gustavo Pimenta would take the reins of the company as its next CEO, wrapping up a turbulent succession process months ahead of the company’s own deadline.
Shares of Vale gained 3% on Tuesday, as many analysts welcomed the leadership shakeup.
Brazil’s top miner, privatized more than a quarter of a century ago, is a major producer of iron ore, pellets and nickel in addition to running mines that tap manganese, cobalt, copper, gold and silver.
Vale disclosed this year a leadership succession schedule calling for three finalists for the top job to be approved by its board by late September, and then a final pick unveiled by early December in time for a key investor event.
“After many discussions regarding the succession process, the board had met, understanding that the earlier the choice was made, in a responsible manner, the better it would be,” chairman Daniel Stieler said in an interview at Vale’s Rio de Janeiro headquarters.
Revealing the pick of Pimenta in August removed “some of the noise of candidate names that had been surging all the time,” but were never evaluated by the board, Stieler said.
Pimenta, the chief financial officer since 2021, should start his new role later this year, Stieler said without providing a specific date.
The chairman noted the unanimous board decision to pick Pimenta, following previous divisions over whether to renew current CEO Eduardo Bartolomeo’s contract.
The company also lost two independent board members earlier this year, with one arguing the succession process had been “manipulated.”
President Luiz Inacio Lula da Silva and other government officials have often criticized the firm’s strategy, especially concerning ongoing repairs related to two deadly tailings dam collapses over the past decade.
Stieler stressed that government officials “really welcomed” the CEO choice, adding that Pimenta’s communication skills will help better convey the company’s value to Brazil.
(By Marta Nogueira and Andre Romani; Editing by Chris Reese, David Alire Garcia and Jamie Freed)
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