Former Vale board member claims political influence in CEO succession
The logo of Brazilian mining company Vale SA is seen in Sao Goncalo do Rio Abaixo, Brazil February 4, 2019. REUTERS/Washington Alves//File Photo Purchase Licensing Rights
RIO DE JANEIRO, March 12 (Reuters) - A former board member for Brazilian miner Vale (VALE3.SA) said his decision to step down on Monday came after the firm's succession process was conducted in a "manipulated manner," according to his resignation letter seen by Reuters on Tuesday.
Last week, Vale, one of the world's largest iron ore miners, extended the term of its CEO Eduardo Bartolomeo until the end of the year, amid media reports that the Brazilian government was seeking to influence the decision.
In the letter to Vale's chair, former board member Jose Luciano Duarte Penido said the process of choosing a new CEO had "evident and nefarious political influence," and that there had been frequent and biased leaks to the press made "in clear disregard for confidentiality."
Vale had reported Duarte Penido's resignation on Monday without detailing his reasons.
In a securities filing released by Vale on Tuesday, the board said its actions during the process of defining the next CEO complied with the firm's bylaws, internal regulations and corporate policies.
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Reporting by Marta Nogueira; Writing by Peter Frontini; Editing by Steven Grattan and Nia Williams
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