The board of JBS has named the company’s founder, José Batista Sobrinho, to replace his son, Wesley Batista, as the chief executive of the company.
The Brazil-based meat and poultry company announced the decision on September 17.
“I am proud to resume leadership of the company we successfully established in 1953,” the new CEO stated. “I have complete confidence in the performance of our leadership, our management team and in our 235,000 employees worldwide who have made JBS the success it is today.”
Joesley, the former chairman of JBS, turned himself into authorities on September 10, while Wesley was arrested three days later. Both are accused of using insider trading to profit from a plea deal entered earlier in 2017 related to a corruption scandal in which the brothers admitted to bribing nearly 2,000 Brazilian politicians.
Wesley was still the CEO of JBS at the time of his arrest, but Joesley had already stepped down as chairman and had been replaced by Tarek Farahat.
Prior to Wesley’s arrest, there were calls for his removal, but the majority of the members of the board had stated that they did not favor his ouster, and the company posted a material fact on the JBS website that doing so could be damaging to the company’s economic and financial stability.
At the time Farahat was named chairman of JBS, José Batista Sobrinho was unanimously elected vice chairman of the board, replacing Wesley in that capacity. Now 84, José, was the first president of the company.
UPDATE 1-World's biggest meatpacker JBS names founder as new CEO
FILE PHOTO: The logo of Brazilian meatpacker JBS SA is seen in the city of Jundiai, Brazil June 1, 2017. REUTERS/Paulo Whitaker/File Photo SAO PAULO (Reuters) - The board of JBS SA voted to name company founder Jose Batista as chief executive, the world’s largest meatpacker said on Sunday, after his son Wesley was jailed by Brazil’s federal police on allegations of insider trading.
JBS Names José Batista Sobrinho as CEO
Brazilian meatpacking giant JBS SA named founder José Batista Sobrinho, 84, to replace his jailed son as chief executive Sunday, defying shareholder calls for outside management as the family-run company faces a mounting corruption scandal.