Tony Petrello had previously made a name for himself as one of the nation’s top mergers and acquisitions attorneys. Having worked on many of the largest cases of the 80s, he had gained the insight and expertise to take on some of the most challenging legal cases in recent American corporate history. It was no surprise, then, that when he took the helm at Nabors Industries, one of the nation’s leading suppliers of directional drilling equipment, that he tapped into that vast expertise to take the company to the next level of competitiveness.
Shortly after becoming CEO, in 2011, Anthony Petrello decided to undergo a radical restructuring program that he knew would be able to save the company billions of dollars per year in unnecessary taxes. Facing massive disapproval from shareholders and even the board of directors, Petrello went head, outlining an ambitious plan to reincorporate the company in Bermuda, potentially saving enough money to equal the company’s market capitalization multiple times.
After some heavy infighting, Petrello managed to convince the board of directors to pursue his vision. After all, he was the man who had taken the Nabors Industries stock from $0.50 per share straight up to $50 per share. Still, the shareholders were concerned that they would lose their ability to control the direction of the company if it were to be reincorporated in an area that gave them less autonomy over the executive suite. But Petrello overcame these fears, pointing to his more than 20 years of honest and phenomenally successful leadership.
Ultimately, the company was reincorporated in Bermuda, saving it hundreds of millions of dollars per year in unnecessary taxes. Today, Nabors Industries is trading at more than double its price when Petrello took over, making his long reign one of the most successful in the company’s history.
Brazil’s High Labor Court allows for business to business outsourcing as long as there is no direct supervision by the service provider of the worker. In addition, the contractual relationship cannot be tied to a specific provider, since this is a specific element that is reserved for the employer-employee relationship under Brazilian law. Most importantly, a company’s principal business cannot be outsourced to another provider under the current framework to learn more: https://ricardotosto.blog/ click here.
However, a bill that would change all of this has already passed the House of Deputies and is currently under consideration in the Senate. The new law would allow companies to outsource operations in their main line of business, not just ancillary services. The law would also allow outsourced workers to work at the same company through different outsourcing companies by simply transferring from one provider to another. It would also make it possible for businesses to sub-outsource operations, i.e. for an outsourcing provider to outsource to another business.
Labor reform is one of the most contentious political issues in Brazil right now along with pension reform. Many believe that these changes are necessary to attract the foreign investment that will bring Brazil out of its spiral of recession. Those in the know say that business-friendly reforms such as the outsourcing bill need to be passed before the next election cycle starts.
Ricardo Tosto is a pillar of Sao Paulo’s legal community. Ricardo Tosto earned his LLB degree from McKenzie University School of Law, one of the city’s most highly-regarded law schools. For more than two decades, Ricardo Tosto & Associates has grown his firm into a Sao Paulo institution.
Ricaro Tosto is also a well-known author and historian of Brazil. His book about one of the most important episodes in Brazilian history, the trial of Tiradentes, was a best-seller that garnered him much media attention.