At elections appeared tangentially in a conversation that the top echelon of Banco do Brasil (BBAS3) had with market analysts, indicated Genial Investimentos.
According to the broker, CEO Fausto Ribeiro said that the bank sought to shield itself more from political interventions over the years.
In addition to the state-owned company law that protects minority shareholders – implemented after BB’s Bom-Para-Todos program, which helped to bring down its profitability -, the bank has a master plan, said the brokerage.
Genial recalled that the mechanism is a long-term strategic planning (five years), “which has to be followed regardless of the new presidency of the bank, avoiding any more drastic measures in the course outlined”.
The brokerage also highlighted that Banco do Brasil cited the board and committees. The board of directors, said Genial, is composed of 50% independent members, in addition to two being minority.
“The issue of minority shareholders is important for shielding the bank, as they tend not to take measures that could affect their own return”, he highlighted.
Important decisions, the brokerage recalled, are all made collectively, never individually. “There are a number of internal decision-making committees that prevent harmful measures against the bank,” she said.
Genial also cited the eligibility of the organizational structure. “Below the position of statutory directors, only career employees of the bank (technicians) can occupy the positions”, he said.
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
