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Tuesday, March 29, 2011

Vale (VALE) CEO Under Fire from Meddling Brazilian Government

The government of Brazil is reportedly interfering in giant miner Vale's (NYSE:VALE) inner workings, as they attempt to have CEO Roger Agnelli removed from his position, according to media outlets in the country.

Brazil's government has attempted to force Agnelli out for years, accusing him of not doing enough to boost the economic development of the country; something only a socialist would accuse Agnelli of doing, as a business doesn't exist for the purpose of increasing the economic condition of a country, but to be profitable.

When it focuses on generating profits, the economic boost will come on its own, not the other way around.

Apparently this has reached beyond the past pressures of the government of attempting to remove Agnelli, to having already deciding that and are now looking for a replacement for him, according to the newspaper O Estado de S. Paulo.

While officially the government isn't allowed to fire Agnelli, they can unofficially work behind the scenes, as they have been doing, to influence the decision by bringin other major shareholders on board for the decision and action.

Vale S.A. closed Monday at $32.21, down $0.13, or 0.40 percent.

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