State salaries go up 94% of directors On top of state

Author (s): Agencia Globo / Bruno Villas Boas
O Globo - 27/06/2010

Companies pay directors $ 45 million in the year, 94% more than in 2007

Petrobras, Eletrobras and Banco do Brazil (BB) - the three largest Brazilian state-held - this year expects to spend U.S. $ 45.51 million just to pay salaries, bonuses, profit sharing and other benefits of 50 top officials (as presidents, vice presidents and directors). Survey of GLOBE on documents sent to the companies themselves Securities Commission (CVM) shows that this represents an increase of 94% compared to U.S. $ 23.512 million disbursed for payment to executives for three years.

Spending to pay for senior grow both by increasing the number of directors - which went from 41 to 50 in those four years - driven by Bank of Brazil and Eletrobras, as the largest individual gain of each.

The monthly remuneration of directors over the past three years rose 75% in Petrobras (to R $ 119,294), 66% at Bank of Brazil (to R $ 72,576) and 35% in Eletrobras (to R $ 45,354). Are average values, being larger or smaller for each director or president, and consider fixed and variable gains.

In the private sector, executives received during the same period increased by 30%, below granted by the state, according to consulting firm Watson Towers. Another important indicator of inflation by INPC - used in negotiations between labor unions and employers - increased by 22,75% during the period, lagging behind gains in the state.

Private sector pay up to 21 times more

Even greater than the perceived private initiative, advances of pay divides opinions. The heads of state receive less than some of their peers who work in the private sector. But experts point out, however, state that directors are, with exceptions indicated by political parties for the post, and enjoy greater stability in function.

- If the spirit is to preserve the state invested professional and qualified, there is good increase - said Gil Castello Branco, the NGO Open Accounts. - But there are those who fall with a parachute, nominated by someone, and projected gains in office. It is not necessarily charged. And this happens not only in government but there were also others.

The increase was most generous came from Petrobras, which pays the highest average earnings per head between the three state. Each can receive on average U.S. $ 1.431 million on this year including salaries, bonuses, profit sharing or other benefits, according to data sent by the company to the CVM. This will mean an increase of 75% over that paid in 2007.

Only in profit sharing and bonuses, the board of Petrobras may receive a total £ 3.268 million in 2010. Last year and before that, executives received no bonus payment. In total this year, Petrobras will spend up to $ 10.02 million to pay directors.

But the Petrobras executive pay is still below the average private sector. At Chevron, for example, each director received £ 1.68 million per month in 2009 (latest figure available). The amount was equivalent to almost two years of gains of directors of Petrobras, ie, 21.7 times more. Another reference is the Valley's second largest company in the country. Each director received R $ 526,194 per month in 2009, on average, 6.8 times more.

According to Christian Mattos, a consultant with Towers Watson, Petrobras would pay higher if the company were completely private.

- Today I do not believe that an executive high-end private initiative to accept the salary of Petrobras, however large the challenge - the company adds Mattos.

Petrobras currently has six directors and a president, Jose Sergio Gabrielli. The five officers are career employees of the company. Gabrielli was a candidate for federal deputy in 1982 and the Government of Bahia in 1990, when the PT. All directors, however, has support from some political party, as PT, PMDB and PP.

The remuneration is also growing at a rate high on Eletrobras, state holding in the electricity sector. Three years ago, each director of the company earned U.S. $ 401,681 per year. That wage will rise to U.S. $ 544,250 in 2010, an increase of 35.5%. Only in 'Christmas bonus' will be distributed U.S. $ 35 000 each this year.

Of the six directors of Eletrobras, five were nominated by the PMDB, including its president, José Antonio Muniz Lopes, supported by Senator José Sarney (PMDB). A sixth director was put in charge with the support of the then chief minister, Dilma Rousseff, now a candidate for the presidency by PT.

Together, the six directors of Eletrobras will earn $ 3.265 million in salary this year.

In 2007 the state had three directors who, combined, received $ 1.2 million. This is an increase of 161% in that period.

Expert defends 'shield' state

More detailed figures on earnings of executives are beginning to come out with new rules of the CVM, which seeks to increase transparency in the market. The Eletrobras, however, sent the wrong data to the municipality, stating that directors received $ 1 million less than in 2007. The state alleged mistake.

At the Bank of Brazil, and also increased from 31 to 37 the number of board members over the past three years, the institution in the period amounted to R $ 525,069 R $ 870,923 for the average pay for each individual executive per year. The high was 66%.

Indications on the boards of BB cost the Lula government in 2004, one of his earliest scandals. Officers attached to the PT in the bank approved the purchase of 70 tables for the show's folk band Zeze di Camargo e Luciano, whose proceeds would be donated to the PT to buy a seat in Sao Paulo.

Claudio Weber Abramo, diretorexecutivo the NGO Transparency Brazil, said the Brazilian state need to be shielded from political appointees, with methods of internal promotions.

- Every state has indicated directors.

It's a genetic problem.

That does not mean that everyone is incompetent. But neither gives us security that wages are actually earned

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