Pension fund plans hands-off approach to Vale chairperson picks

Brazil’s largest pension fund will no longer seek to control selection of Vale SA’s chairperson and wants the iron ore miner to be overseen by an independent board leader.

“We will no longer make any nominations for the chairman of the board position,” said Adriana Chagastelles, equity director at Previ, the 122-year-old pension fund that controls a 7% stake in Vale.

Caixa de Previdência dos Funcionários do Banco do Brasil, as the fund is formally known, is pushing for an extraordinary shareholder meeting to vote on the removal of Vale chairman Daniel André Stieler. The demand, which faces resistance from a majority of the board, followed a leadership shakeup at Previ, which manages retirement savings for former Banco do Brasil SA employees.

Stieler’s term extends to April 2027 unless he is ousted early. Previ isn’t accusing Stieler of any wrongdoing and has dismissed suggestions of political interference stemming from Banco do Brasil’s status as a state-controlled lender, Chagastelles said.

Rather, the pension fund is seeking to dispel the notion that it serves as a government tool within companies in which it holds stakes, Chagastelles said during an interview Monday.

An independent Vale chairperson would foster a “more transparent and unbiased” process for assembling a slate of prospective directors ahead of a 2027 shareholder vote, she added.

Previ is backing the election of director Manuel Lino Oliveira as chairman. Known as Ollie, he has more than 45 years’ experience in corporate finance and strategy within the mining sector, mainly with Anglo American Plc and De Beers Consolidated Mines Ltd.

The final decision on Stieler’s removal will be made by shareholders at a July 22 meeting. Previ said it has already held discussions with key Vale investors and plans further outreach but Chagastelles stressed she has no guarantee the proposal will be approved.

Vale disclosed details of its extraordinary general meeting in a Tuesday regulatory filing, which confirmed the names proposed by Previ and two alternative candidates previously reported by Bloomberg. The board told investors it will continue to perform its duties with “autonomy, diligence, and technical rigor,” seeking to balance strategic continuity with its ongoing evolution of governance.

(By Mariana Durao)