Brazilian miner Vale has announced that Chief Financial Officer Gustavo Pimenta will take over as CEO, a decision made to curb market speculation about potential candidates. This announcement comes ahead of the company’s original timeline for leadership succession, which was set for early December.
Chairman Daniel Stieler stated that this proactive move was intended to eliminate the ongoing speculation surrounding various candidate names that were not formally evaluated by the board. The decision was unanimously supported by the board, especially after earlier divisions over the renewal of former CEO Eduardo Bartolomeo’s contract.
Pimenta, who has been CFO since 2021, is expected to begin his new role later this year. Vale’s shares rose by 3% following the announcement, with analysts viewing the leadership change positively.
The company has faced scrutiny from government officials regarding its strategies, particularly in light of past incidents related to tailings dam collapses. Stieler emphasized that the government’s response to the CEO selection has been favorable, noting Pimenta’s strong communication skills as a vital asset for conveying the company’s value.