The board of Vale SA, the world's leading iron ore producer, has voted against a proposal from its major shareholder, Previ, to remove current chairman Daniel André Stieler. Despite the board's decision, the proposal for Stieler's removal will proceed to a shareholder vote scheduled for July 22. This board decision is significant as it could influence the recommendations of proxy advisory firms and institutional investors participating in the process. Stieler's current mandate is set to expire in April 2027 if he is not removed earlier.
Previ, Brazil's largest pension fund and manager of retirement savings for employees of state-controlled lender Banco do Brasil, holds a 7% stake in Vale. The fund made the request on June 11 for an extraordinary meeting to vote on Stieler's removal, who has been in his position since April 2023. This move followed a leadership shake-up at Previ itself. Jose Mauricio Pereira Coelho, a former CEO of Previ and former chairman of Vale from 2019 to 2021, has been appointed by Previ to fill a vacant board seat.
Simultaneously, Previ has announced a shift in its strategy regarding the chairmanship. While Previ initially backed Manuel Lino Oliveira as chairman, the pension fund will not directly nominate a chairman candidate at the 2027 shareholders' assembly. Instead, Previ will support an independent candidate who best aligns with the company's governance priorities. This new approach, emphasizing the selection of an external candidate, is intended to reinforce Previ's commitment to improving corporate governance and fostering long-term value at Vale. An official market communication from Previ is expected to further detail this decision.
