Petrobras’ Board of Directors has approved, at a meeting held yesterday (October 25), a decision to create the position of Executive Director of Governance, Risk and Compliance.
The new Executive Director will ensure process compliance and risk mitigation, including, fraud and corruption, therefore guaranteeing compliance with laws, norms, standards and regulations, including Comissão de Valores Mobiliários (Securities and Exchange Commission) of Brazil (CVM) and U.S. Securities and Exchange Commission (SEC) rules.
Petrobras says it is important to mention that besides participating in the decisions of the Executive Board, subjects submitted to the appreciation of the Executive Board should necessarily have a previous positive assessment of this Director regarding governance, risk and compliance.
The company emphasized that the creation of this position does not increase the number of Executive Directors in Petrobras Executive Board, as this post is replacing the seat of the International Executive Director.
The Board of Directors will elect the new Executive Director based on a list of three Brazilian professionals previously selected through a process that will be conducted by a company specialized in recruiting executives, which will seek for well-known competent market professional in this area.
Petrobras explains that the Governance, Risk and Compliance Executive Director will serve a three-year term, which may be renewable, and will only be removed if determined by the Board of Directors, with quorum including the vote of at least one Board Member elected by the minority or by the preferred shareholders.
Over the next 60 days, Petrobras says it will complete the detailing of final structure and the operating model of the new area, as well as the allocation of the activities of the International area.