Thursday, April 23, 2020
Eni vs Petrobras: What do they have in common?
Many are the points in common between the Italian oil giant Eni and the Brazilian oil giant Petrobras.
1) Both are the largest companies in their countries;
2) The Italian and Brazilian government are the main shareholders in each of them with approximately 30% of the shares;
3) Most Directors of the Board are indicated by the government, ie, "politically indicated";
4) The CEOs are placed in their functions indicated by the Prime Minister, in the case of Italy, and by the President of the Republic, in the case of Brazil;
5) The companies management is far from being "independent" as it happens in the private companies. The governments have a complete interference.
However, Eni and Petrobras are different in two things, nowadays:
a) The current CEO is not a defendant in a criminal lawsuit (International Corruption);
b) The current CEO's wife did not receive $ 300 million from the company (Conflict of Interest);
Even so, the government confirmed another 3-year term for a #CEO accused of #corruption.
In fact, in a private company with values, honesty, integrity and ethics this situation would never happen!