While Brazil is still trying to cope up with the damage done to its economy by Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), there is an interesting nomination of the new Board Chairman. Vale SA (ADR) (NYSE:VALE)’s CEO, Murilo Ferreira, has been nominated as the new Board Chairman of Petrobras. This is clearly going to disappoint the ones who were looking forward to some sweeping changes in the company.
Murilo Ferreira’s nomination
The nomination of this new candidate will go under the voting process at the next meeting of Petrobras shareholders, which is scheduled for April 29, 2015. If Murilo Ferreira manages to get the votes in favour, he shall become the new Chairman of company and succeed the former Finance Minister of Brazil, Guido Mantega. He has been the head of company since 2010.
Meanwhile, Petrobras also announced that the head of development bank of Brazil, Luciano Coutinho, shall serve as the company’s Interim Chairman until the board voting in the next month.
Nominating Murilo Ferreira: Not to Create an Impact on the Board
Murilo Ferreira is said to be a trusted ally of the Brazilian President, Dilma Rousseff. He has been the career employee at Vale. According to the analysts and investors, appointment of Ferreira will not create a vital impact on the mindset of the Board, because it has most often only acted as the robot to the policies of Worker’s Party.
According to M. Safra & Co’s Fund Manager, Guilherme Figueiredo, nomination of Murilo Ferreira is more like the company’s missed opportunity to save its interests. The concern, he explains, is that this Government is not looking for any surprises. It is more like saving their Government.
Meanwhile, João Pedro Brugger, an Economist, sees the ray of light in the dingy room, with this nomination. He explained that this was a considerable upgrade. Despite being connected to the Government, this nomination is a good choice, according to the economist.