Petrobras CEO and 5 Other Executives Resign

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Petrobras CEO and 5 Other Executives Resign

Chief Executive Maria das Gracas Foster Has Been Pressured for Months to Resign Amid Scandal

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Petrobras Chief Executive Maria das Gracas Silva Foster is seen arriving at the Brasilia international airport after meeting with President Dilma Rousseff Tuesday. The company informed Brazil’s stock market regulator on Wednesday that she and five other executives have resigned. PHOTO: REUTERS

By

JEFFREY T. LEWIS And

 

ROGERIO JELMAYER

Feb. 4, 2015 8:10 a.m. ET

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SÃO PAULO—The chief executive officer and five other executives of Brazil’s state-controlled oil company Petroleo Brasileiro SA have resigned, the company informed the country’s stock market regulator on Wednesday.

Chief Executive Maria das Graças Foster has for months been under mounting pressure from investors and opposition politicians to resign from her post amid a widespread corruption scandal. Ms. Foster hasn’t been implicated in the scandal.

The pressure ratcheted up on Tuesday when local media outlets reported that Brazilian President Dilma Rousseff had decided to replace Ms. Foster. Investors cheered the reports, sending Petrobras shares up more than 14% yesterday. Shares were up 6.1% at 10.61 reais in midmorning trading.

Ms. Foster, 61, has been the chief executive since 2012, and has offered her resignation to Ms. Rousseff at least twice. Ms. Foster and Ms. Rousseff met Tuesday at the presidential palace here, but neither addressed the media after the meeting.

Petrobras informed the regulator of the resignations of Ms. Foster and another five unidentified executives in response to a request from the regulator for clarification of the recent reports.

—Luciana Magalhaes and Paulo Trevisani contributed to this article.

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