Vale board weighs non-payment of dividends after dam breach
Vale S.A. said that in consequence of the breach of Dam I of the Corrego do Feijao mine in Brazil, its board established two Extraordinary Independent Consulting Committees. The first independent committee will be dedicated to follow-up on the measures taken to support the victims and the recovery of the areas affected by the breach of the dam. The second independent committee will be dedicated to investigating the causes and responsibilities for the dam breach. Additionally, it deliberated the following changes on the remuneration and incentives schemes: The suspension of the Shareholder Remuneration Policy, and therefore the non-payment of dividends and interest on capital, as well as any other deliberation on shares buyback, The suspension of the variable remuneration payment for executives. Value added that its board "remains in readiness and following the developments of the events related to the dam breach and it will take necessary additional measures." Shares of Vale closed Friday down 8% to $13.66 and are down an additional 13% in premarket trading to $11.86.