This is not a case of a CEO leaving for a better opportunity, "to spend more time with family," or to enjoy a well-earned retirement. Instead, Vale's CEO is basically being run off by the Brazilian government, who apparently wants a more pliable and compliant executive running one of the country's largest companies.
Not only is this a serious matter for Vale shareholders, who are losing out on the continued leadership of an executive who was at the very least competent, but it is a serious matter for all investors with an interest in Brazil. While there can be a healthy and spirited debate about the balance between public and private interests, direct interference in a publicly-run company sets a dangerous precedent and Brazil's government had better be careful or risk falling out of favor in many investors' eyes. (For related reading, see Cautionary Signs For International Investors.)
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