Petrobras is due to hold a shareholders’ meeting on April 13, but the government has lost its preferred candidates for both CEO and chairman of the board.
Adriano Pires, a consultant working in the oil and energy industry, has reportedly given up on becoming the new chief executive officer of Petrobras, Brazil’s state-controlled oil and gas giant. According to newspaper O Globo, he has already informed the government of his decision.
Several potential conflicts of interest explain the U-turn. As a consultant, Mr. Pires has worked for multiple companies that have relationships with Petrobras. Federal prosecutors within the Federal Accounts Court (a sort of audit tribunal which monitors public spending) challenged his nomination over recent days.
This is the second setback to the government’s move to change Petrobras’ leadership. Early in March, the administration picked Rodolfo Landim to become the company’s new chairman of the board of directors. He turned down the nomination over the weekend, also due to questions over conflicts of interest. Consultancies ISS and Glass Lewis issued negative proxy voting recommendations on Mr. Landim to foreign investors.
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