Vale adds sustainability goals to long-term compensation

By Daniel Brightmore
Brazilian miner Vale SA has included environmental, social and governance goals to the long-term variable compensation of its top management and resumed...

Brazilian miner Vale SA 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 at the weekend.

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, reports Reuters.

SEE ALSO:

Vale carries out construction work to improve safety on emergency-level dams in Minas Gerais

Rio Tinto and Vale named among world’s top 50 most innovative companies

Jaguar Mining: the mining world digs in for a thriller in Brasilia

Read the latest issue of Mining Global here

Vale also said it resumed payments of variable compensation for employees who are not under investigation of the Brumadinho disaster. The company had cancelled 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 reals 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.

For more insights on mining topics - please take a look at the latest edition of Mining Global.

Follow us on LinkedIn and Twitter.

Share

Featured Articles

Laws Thwart US Bid to Match China on Lithium Mining

US bid to increase domestic production of lithium in order to reduce reliance on Chinese supplies of critical mineral frustrated by 'confusing' state laws

Bain: 'Inflation Dampening Mining Leaders' Net Zero Hopes'

Bain & Company’s annual Energy & Natural Resource Executive Survey shows 62% of energy execs say high costs mean net zero goals won't be met by 2060

Focus on: Lithium – ‘White Gold’ Driving the EV Revolution

Because of the move to electric vehicles, the metal lithium is rapidly becoming a vitally important part of world’s bid to move away from fossil fuels

Aluminium Industry Calls for new North America Body

Supply Chain & Operations

Data-Driven ABB Smart Hoisting Solution 'is Safety Boon'

Digital Mining

Deep Sea EV Metals Mining Firm in Greenpeace Clash

Sustainability