Bolsonaro's pick for Banco do Brasil CEO not ready for the job, say board members

Two out of the four signatories, Chairman Helio Magalhaes and Jose Guimaraes Monforte, will resign from the board, Banco do Brasil said in a securities filing later on Thursday evening. Currently, Brazil's far-right Bolsonaro is entitled to nominate the chief executive, leaving its board of directors little say, in a deviation of corporate governance best practices.

Banco do Brasil SA's board members argued in a public statement on Thursday that President Jair Bolsonaro's nominee to take over the state-controlled bank was not ready for the job and that the board should have the power to appoint its leader. Two out of the four signatories, Chairman Helio Magalhaes and Jose Guimaraes Monforte, will resign from the board, Banco do Brasil said in a securities filing later on Thursday evening.

Currently, Brazil's far-right Bolsonaro is entitled to nominate the chief executive, leaving its board of directors little say, in a deviation of corporate governance best practices. Bolsonaro has named Fausto Ribeiro, currently the CEO of the small business unit of Banco do Brasil, to replace Andre Brandao on March 18. Ribeiro's appointment, which would also make him a board member, was opposed by several existing board members.

In a statement, board members Magalhaes, Monforte, Luiz Spinola and Paulo Roberto Evangelista de Lima said Ribeiro meets the legal requirements to become Banco do Brasil's CEO. Still, they say he lacks management experience to run the bank. These board members account for half of Banco do Brasil's directors, not including Brandao, who did not participate in the meeting.

Brandao resigned two months after Bolsonaro disagreed with cost-cutting measures taken by the former, such as the closure of some branches and an employee buyout program.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)