Brian Ellsworth, Guillermo Parra-Bernal – Reuters/National Post, 01/24/2011
Markets dictate that corporate managers who create the most value for shareholders keep their jobs. But for Brazil’s two biggest companies, state-controlled oil firm Petrobras and mining giant Vale, the reality may shape up to be exactly the opposite.
Roger Agnelli, who over a decade helped transform Vale into the world’s leading iron ore producer, is under fire for not creating enough jobs in Brazil and rumors are swirling that President Dilma Rousseff could lobby for his ouster.
In contrast, Jose Sergio Gabrielli may stay on as Petrobras CEO despite a $38 billion tumble in market value last year sparked by a plan that boosted government control over the company despite complaints from private shareholders.