April 15 (Bloomberg) — Brazilian chief executive officers are fighting to keep their salaries secret.
Companies from Embraer SA to Itau Unibanco Holding SA to Vale SA, all with American depositary receipts, don't disclose compensation for top officials, contrary to international norms in countries like the U.S. and U.K. Four years after securities regulator CVM ordered release of expanded pay details, more than a third of Brazil's most-traded companies are refusing to do so as a court case against the decision plays out.
Shareholders say the information ensures CEOs don't overpay themselves to the detriment of investors, while corporations say the rule violates managers' privacy and puts them at risk for kidnapping. They cite the case of Abilio Diniz, who was held hostage for several days in 1989 when he was an executive at supermarket chain Cia. Brasileira de Distribuicao Grupo Pao de Acucar, and the escape of three children of billionaire Jorge Paulo Lemann from an attempted abduction in 1999.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.