WEG Case: The Importance of Governance for Continuous Growth
Posted: Sun Jan 19, 2025 9:12 am
At Saint Paul Business School, we held the event “Governance in Practice: WEG Case” with Décio da Silva , Chairman of WEG’s Board of Directors, in which he shared details about the company’s trajectory, the functioning of the Boards and the challenges of a succession process. Moderated by Jorge Louzada, Director of the Strategic Finance Program for C-Levels and Board Members - FECC at Saint Paul, the conversation highlighted how governance has been a fundamental pillar in WEG’s continued success.
WEG's Evolution and Governance as a Pillar
Founded in 1961 by three families, WEG is now in its third generation and continues to expand. The company's governance structure is comprised of the General Assembly, a three-member Fiscal Council, a seven-member Board of Directors, an Audit Committee also with three members and an External Auditor, in addition to the Presidency and the Board of Directors. This configuration allows the company not only to comply with best governance practices, but also to ensure effective and organized management, in which each body fulfills its specific duties.
According to Décio, one of the basic principles for australia whatsapp data successful governance is meritocracy, something intrinsic to WEG’s culture. He emphasizes that “governance is each of the departments fulfilling their duties”, emphasizing the importance of clarity and responsibility in the performance of each function. “The most noble thing of the Board of Directors is to outline the company’s strategy”, stated Décio, emphasizing that the Board not only directs the company, but also ensures that each area is aligned with long-term objectives.
Read also: Challenges and Successes: How Warren Investments Revolutionizes the Financial Market
A Structured and Strategic Board
WEG's General Assembly plays an essential role in approving the Management Report, the Financial Statements, the remuneration of directors and members of the Board of Directors, in addition to deciding on dividends and changes to the bylaws. The Board of Directors, in turn, acts in compliance with the legislation, the company's bylaws and best market practices, while the Board of Directors proposes and executes the strategic plan.
For Décio, a company’s results are directly proportional to the quality of its strategy and its execution: “Results = Strategy + Execution”. He also highlights the importance of the organization’s continuous growth. “A company that doesn’t grow doesn’t create opportunities, and who wants to work for a company that doesn’t grow? People have to see opportunities for growth”, he stated. WEG, as he describes it, is a “people factory”, where team development and passion for the company are fundamental. “A successful company is one that makes its employees and customers passionate”, reinforced Décio, showing that success goes beyond profit and expansion.
Read also: Regulatory Trends and Board Diversity: Urgent New Challenges
Succession Challenges and Lessons Learned
Succession, another crucial aspect of WEG’s governance, is carefully planned and involves all levels of the organization. This process is not limited to the top, but also includes the preparation of leaders in different areas, ensuring the continuity of the company’s culture and values.
The role of counselor, however strategic it may be, also demands resilience and emotional balance. Décio reflected on the challenges and responsibility that come with the position, which often requires patience and discretion.
WEG's Evolution and Governance as a Pillar
Founded in 1961 by three families, WEG is now in its third generation and continues to expand. The company's governance structure is comprised of the General Assembly, a three-member Fiscal Council, a seven-member Board of Directors, an Audit Committee also with three members and an External Auditor, in addition to the Presidency and the Board of Directors. This configuration allows the company not only to comply with best governance practices, but also to ensure effective and organized management, in which each body fulfills its specific duties.
According to Décio, one of the basic principles for australia whatsapp data successful governance is meritocracy, something intrinsic to WEG’s culture. He emphasizes that “governance is each of the departments fulfilling their duties”, emphasizing the importance of clarity and responsibility in the performance of each function. “The most noble thing of the Board of Directors is to outline the company’s strategy”, stated Décio, emphasizing that the Board not only directs the company, but also ensures that each area is aligned with long-term objectives.
Read also: Challenges and Successes: How Warren Investments Revolutionizes the Financial Market
A Structured and Strategic Board
WEG's General Assembly plays an essential role in approving the Management Report, the Financial Statements, the remuneration of directors and members of the Board of Directors, in addition to deciding on dividends and changes to the bylaws. The Board of Directors, in turn, acts in compliance with the legislation, the company's bylaws and best market practices, while the Board of Directors proposes and executes the strategic plan.
For Décio, a company’s results are directly proportional to the quality of its strategy and its execution: “Results = Strategy + Execution”. He also highlights the importance of the organization’s continuous growth. “A company that doesn’t grow doesn’t create opportunities, and who wants to work for a company that doesn’t grow? People have to see opportunities for growth”, he stated. WEG, as he describes it, is a “people factory”, where team development and passion for the company are fundamental. “A successful company is one that makes its employees and customers passionate”, reinforced Décio, showing that success goes beyond profit and expansion.
Read also: Regulatory Trends and Board Diversity: Urgent New Challenges
Succession Challenges and Lessons Learned
Succession, another crucial aspect of WEG’s governance, is carefully planned and involves all levels of the organization. This process is not limited to the top, but also includes the preparation of leaders in different areas, ensuring the continuity of the company’s culture and values.
The role of counselor, however strategic it may be, also demands resilience and emotional balance. Décio reflected on the challenges and responsibility that come with the position, which often requires patience and discretion.