Appointed on Monday (02/22) as excessive by President Jair Bolsonaro, the remuneration – when adding fixed salary with bonuses and other benefits – of the command of Petrobras it can attract attention when compared to other public service positions and, mainly, with the average Brazilian earnings, but it seems common or even below average in the corporate world.
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THE salary average of the presidents of public companies that make up the Ibovespa – that is, the main companies in the market – was R $ 11.3 million in the year in 2019. Petrobras chief executive, Roberto Castello Branco earned R $ 2.7 million in that year , a quarter of the average value. On a monthly basis, the remunerao average gives a salary of R $ 940 thousand per month, while the president of Petrobras earned “only” R $ 226 thousand per month.
At the end of 2019, the average remuneration of Brazilian workers, between formal and informal, was R $ 2.3 thousand per month, according to the IBGE.
The data on high-level executives are surveyed by corporate governance specialist Renato Chaves, former director of Previ, a pension fund at Banco do Brasil. The values were raised in October, in the information that publicly-held companies are required to pass the Securities and Exchange Commission, a regulatory body of the market. Companies need to report the total annual remuneration of the board, discriminating the lowest and the highest value – the highest, almost always, that of the President.
The survey included 71 companies. When ranked according to the highest remuneration paid to the president, Petrobras is ranked 58. Among the ten companies that pay their presidents the best, the banks – Ita, Bradesco and Santander stand out among the ten.
For Marcelo Apovian, I know consultancy global company specialized in recruiting high-level executives Signium, it does not appear that the compensation values of the president of Petrobras are out of touch with the reality of the oil and gas sector, in the global media. “The remuneration of the first level and the second level is adequate with market values.”
According to Apovian, the remuneration of high-level executives varies according to the sector. Traditionally, sectors whose profit margins are more tight pay less. The oil and gas sector, globally speaking, pays well to its high-level executives, because “a business that needs to have good people and the (profit) margin allows it to pay well.”
Chaves, who collected the data on remuneration, estimates that the amount paid by Petrobras is within the normal range for a state-owned company with shares on the stock exchange. On the other hand, the specialist sees excesses in the average salaries paid to top executives in the country. “The remuneration of company presidents in Brazil is excessive, almost always detached from their results and extremely unequal in relation to other employees “, says Chaves.
Chaves’ survey compared the remuneration of the president of each company with the average salary paid to employees as a whole. In the extreme case, the president earns 600 times more than the company’s average. In terms of inequality, the oil company is among those with smaller different, with eight times.