Vale adds sustainability goals to long-term compensation
SAO PAULO – Brazilian miner Vale has included environmental, social and governance goals to the long-term variable compensation of its top management and resumed 2019 bonus payments, according to a securities filing on Saturday.
The move comes as Vale's reputation was hurt after its tailings dam at Brumadinho burst in January last year, killing more than 270 people in the Brazilian state of Minas Gerais.
Health, safety and sustainability targets will respond to 20% of the long-term variable compensation, while the remaining part will depend on Vale's total shareholder return compared to its peers, starting this year, the company said.
Until last year, long-term compensation was entirely based on shareholder return, although short-term bonuses already included sustainability goals.
Vale also said it resumed payments of variable compensation for employees who are not under investigation of the Brumadinho disaster. The company had canceled 2019 variable compensation after it experienced the second deadly dam burst over a four-year period.
"2019 was Vale's most challenging year. Leadership and employees showed resilience amid all difficulties," the company said in the filing, justifying its decision to resume variable compensation.
Vale paid its employees 77.2-million reais in variable compensation for their performance in 2019, 42% down from 2018.
The miner is proposing to its shareholders to merge Ferrous Resources do Brasil, which it acquired in August, with Mineração Jacuípe SA, aiming to cut costs.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation