247 – An article published by Uol this Sunday (5) generated controversy when it questioned the qualifications of the directors and advisors of Previ, the Banco do Brasil pension fund. However, Previ responded to the report, denying the allegations made and clarifying the rigorous process its members go through.
According to the note released by Previ, the Uol report, signed by Andreza Matais, is mistaken in stating that Previ’s directors “do not need to prove experience or qualifications” to serve on the boards of companies in which the fund invests. Previ clarified that all members of the Executive Board undergo careful evaluations, both internal and external, including the governance rites of Previ, Banco do Brasil and Previc, the sector’s supervisory body.
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Furthermore, Previ highlights that it goes beyond legal requirements when choosing its advisors, ensuring that they are qualified professionals and committed to the Entity’s mission, which is to guarantee the payment of benefits to its more than 200 thousand associates and family members.
The institution also emphasizes that the directors appointed by Previ in companies in which it has a stake must be approved by the company’s shareholders at ordinary general meetings (AGOs), which demonstrates recognition and acceptance of the quality of those appointed.
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Another point addressed by Previ is the issue of diversity, highlighting that in 2024 there was an increase in the search for diverse professionals, recognizing the importance of different perspectives to contribute to decisions and innovations.
Previ reiterates that its directors and advisors play an important role for society, disseminating the best sustainability practices and contributing to strengthening the business environment in the long term. Check out Previ’s note in full below:
This Sunday, 5/5, a report was published on UOL attacking the choice of Previ directors and advisors. The text, authored by Andreza Matais, states that Previ directors “do not need to prove experience or qualifications to serve on boards of companies where the Banco do Brasil pension fund invests”.
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The information is wrong. The members of the Executive Board undergo a series of assessments to occupy their positions, as well as the governance rites of Previ, the sponsor Banco do Brasil and the supervisory body, the National Superintendence of Supplementary Pensions (Previc).
Previ goes beyond the requirements of the specifications of Law 6,404, of the SA, when choosing its advisors. After all, when selecting the advisors it will appoint, Previ is choosing professionals who will play a decisive role in the future of its members. Previ’s investments are made with a focus on the Entity’s mission, to guarantee the payment of benefits and provide solutions that provide protection to its more than 200 thousand members and family members.
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Like every investor, Previ acts diligently on the investments it makes, seeking spaces in governance to exert influence on the company’s strategies. This action was recognized by the UN, which invited Previ in 2005 to prepare the Principles for Sustainable Investments. Previ was the only investor in Latin America to receive this distinction.
It is important to highlight that the directors appointed by Previ in the companies in which it has a stake must be approved by the company’s shareholders, through the Ordinary General Meeting (AGO). The high incidence of approval of nominees is a good sign of the quality level of those selected. In 2024, Previ was successful in 94% of the total seats in which it was nominated. All those nominated by Previ comply with criteria that go beyond those usual in the market, including the requirement for recognized certifications, such as IBGC and ICSS. Questioning the appointed advisors is also questioning the AGMs.
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The Previ process has existed for over 20 years and is innovative. It also takes diversity into account. Therefore, in 2024, the search for diversity was expanded. We understand the importance of different perspectives to better contribute to decisions and innovations, resulting in a more robust and equitable culture. Therefore, we increase opportunities for people belonging to groups traditionally less present in collective dynamics, in line with the best Environmental, Social, Governance and Integrity (ASGI) practices.
Advisors play an important role for society, as they represent an important engagement channel for Previ to disseminate best ASGI practices. This strengthens the business environment in the long term, generates better financial returns and positive impacts on the various dimensions of sustainability.
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By stating that Previ’s Executive Board does not attest to experience, and that “The change occurs after questions that directors do not have a resume even to work at Previ itself”, the reporter ignores the selection process criteria and calls into question the experience of people who have been holding the position – successfully – on the Executive Board for years, such as the directors elected by members Márcio de Souza (elected in 2018 and re-elected in 2022), Paula Goto (elected in 2018 and re-elected in 2022) and Wagner Nascimento ( elected in 2020 and recently re-elected in 2024).
The fruits of the current administration of President João Fukunaga, who was appointed by Banco do Brasil and took office in March 2023, speak for themselves and can be proven in numbers after the first year in office. Previ entered 2024 with the highest performance of the last ten years, boasting an excellent accumulated surplus. The value of benefits paid, Previ’s reason for being, was also a record, and exceeded R$16 billion.
In Previ’s governance structure, half of all decision-making bodies are elected by members and the other half are appointed by the sponsor, Banco do Brasil. This is a feature that provides more strength and security for Previ, as well as for all its associates. Elected representatives are also approved by the governance of Previ and the regulatory body, Previc.
Parity governance is part of the essence of Previ, which was founded 120 years ago by 52 Banco do Brasil employees. The Entity was created from the union of these associates, who wanted to protect their futures and those of their descendants. Previ is proud of its founders’ values of mutualism, collectivity and association-centrism, which are a fundamental part of the Entity to this day. We will continue to invest in a sustainable way, collaborating with the development of society and the Brazilian economy, always focusing on the safety of our associates.
