The Association of Capital Markets Investors (AMEC) recommended a group of companies to waive the use of the injunction obtained by the Brazilian Institute of Financial Executives Rio de Janeiro (IBEF-RJ), which exempted these companies from disclosing information regarding the remuneration of directors and senior managers in the framework demanded by the Securities and Exchange Commission (CVM).
Amec understands transparency in the practices of management compensation as a necessity for publicly held companies, concerned with the service offered to their shareholders, for two reasons. The first refers to the opportunity to report how the shareholders’ capital has been invested, and the second relates to the significant impact such transparency brings to the structure of incentives, which may lead either to an increase or to a decrease in recurring “agency problems” — a conflict of interest among a company’s shareholders and managers.
Furthermore, Amec believes transparency in the remuneration of directors to be relevant information for shareholders to understand the decisive process of a company, and, subsequently, to opt to invest in its securities.
Therefore, endeavoring to encourage some companies to fulfill CVM’s disclosure policies, Amec sent a letter to all Ibovespa companies that currently use IBEF-RJ’s injunction. They are: Gol, Iguatemi, Gerdau, IMC, Fibria, Itau Unibanco, Itausa, Eztec, Even, Kroton, Embraer, Duratex, Lojas Americanas, CSN, CPFL Energia, Minerva, Cosan, Multiplus, Oi, Cielo, CCR, Pão de Açúcar, Brookfield, Braskem, Santander, Suzano, Bradespar, B2W Digital, Telefônica Brasil, Tim, ALL, Bradesco, and Vale. Each letter was addressed to the respective President of the Administrative Council, Executive President, and Director of Investor Relations.
In the document, the Association suggests companies and executives to waive IBEF-RJ’s injunction and makes Amec available to discuss proposals on the matter.