Previ Meeting on Corporate Governance discusses the role of investors

Pedro Rudge, Amec’s board member (in the center), participated in the debate together with Eduardo Figueiredo, Investment Manager at Aberdeen, and Gilmar Wanderley, Manager of Securities Interests at Previ
On October 22, Previ, Brazil’s largest pension fund, held its annual governance event. With the theme “Nothing is permanent but change,” one of the meeting’s focus was the role of investors in the companies’ governance and sustainability practices.
Pedro Rudge, Amec’s board member and partner at Leblon Equities, highlighted the importance of a continuous dialogue between companies and investors at board level. “If we analyze the USA and Europe, we will see that boards have been interacting more and more with investors. It is not a usual situation in Brazil, but it is important to highlight that the market is like a compass for the boards, reason why it is important to close the gap,” he stated. He highlighted Leblon Equities’ decision to adhere to the Amec Stewardship Code as a way of organizing the engagement, supervision and voting decisions in invested companies.
Yet Eduardo Figueiredo, manager at Aberdeen, asked the audience: “When was the last time that you, board members, participated in a shareholders’ meeting? How often does the board’s chair participate in these meetings? What about institutional investors? How often do they participate? If we analyze the answers, maybe we will be able to move forward, communicate more effectively and maximize investor engagement. Eduardo also mentioned that Aberdeen’s approach is based on the integration between the investment and the governance teams.
Eliane Lustosa, Director of Capital Markets at the Brazilian National Bank for Social and Economic Development (BNDES), talked about the institution’s stewardship practices – BNDESPAR is a signatory to the Amec Code – and highlighted the importance of focusing on transparent sustainability and executive compensation practices.
The event was also attended by representatives of Ambev, Votorantim, Spencer Stuart, and ICTS, among others.