The 130% readjustment in the remuneration of the management of the Eletrobras 🇧🇷ELET3) should not impact the dividends to be distributed by the company in the coming quarters, says Felipe Leão, a specialist at Value Investments🇧🇷
According to him, the calculation, made by the consultancy korn ferryalready designs the company’s business plans and, therefore, “would not be reckless with the distribution of dividends”.
The company itself states that the study is in line with the strategic guidelines, contemplated in its 2022-2026 business and management master plan.
Eletrobras announced on Tuesday (22) that it would pay R$ 35.9 million to administrators, members of the fiscal council and statutory committees. For members of the executive board, the amount is R$30.5 million. The proposal will be voted on in December.
Valor’s specialist explains that the indicative for the readjustment considers the eventual reduction of expenses with payroll of the Eletrobras — who would have recently gone through a voluntary resignation program —, and the hindrances of privatization🇧🇷
Leão says that, with the privatization, the company becomes more competitive and starts to face the market with greater margin. With this, investors should expect increased cash flow and profit generation.
The analyst of Activate Investments, Ilan Arbetman, points out that it is important to know how to differentiate the price of having a strong board and board of directors, from the value that this company can generate for shareholders. “We face this increase naturally”, he says.
With that, the company’s cash must support the readjustment and dividends.
Experts also say that the readjustment is necessary to keep top talent within the company, especially in the face of an extremely competitive market. Eletrobras explained that, during the last seven years, there were no readjustments in remuneration.
Follow Money Times on Facebook!
Connect with Money Times journalists and readers. Our team brings the most important discussions of the day and you participate in conversations about the news and analysis of everything that happens in Brazil and in the world. Click here and start following the Money Times Facebook page!
O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.
LULA X FINANCIAL MARKET: follow the impacts on the new government and receive insights, news and analysis for the next 4 years. It’s free!
Receive the main news and analysis from Monday to Friday. It’s free!
By clicking on the button, you authorize Money Times to use the data provided to forward informative and advertising content.