By Brazil Stock Guide – Under growing investor pressure, Hapvida (HAPV3) CEO Jorge Pinheiro said he will step down after 27 years to take a seat on the company’s board of directors. In a letter to investors, however, he stopped short of directly addressing demands from Squadra Investimentos — which has called for asset sales, governance changes and stricter capital allocation — referring to divestments only as a possibility, with no concrete measures or timeline.
The fund’s letter, released last week, sharply escalated criticism of the company, accusing Hapvida of delivering “one of the greatest destructions of value in the history of the Brazilian capital markets.” The stock has fallen about 85% since its IPO, compared with a roughly 120% gain in Brazil’s benchmark Ibovespa index over the same period.
In his message to investors, Pinheiro adopts a cautious tone and avoids announcing immediate structural changes. He acknowledges that recent results have come in below the company’s potential and says Hapvida has gone through “one of the most challenging phases” in its history, marked by complex integrations and difficult operational decisions.
The CEO frames the current moment as a transition between cycles. After years of expansion and consolidation — including the integration of NotreDame Intermédica — the company is now entering a new phase focused on operational efficiency, profitability and cash generation.
Within that context, Pinheiro says deleveraging will be a priority and indicates that Hapvida may evaluate the sale of non-core assets. The reference remains broad, however, with no indication of which assets could be sold or when.
Hapvida said Luccas Augusto Adib will take over as CEO, in a move aimed at refreshing leadership and accelerating the efficiency agenda amid rising pressure for results.
The letter also highlights technology and data as key productivity drivers, pointing to efforts to advance digitalization and standardize medical practices. The message seeks to reposition the company’s narrative around execution after a period dominated by growth through acquisitions.
As he moves to the board, Pinheiro says he intends to remain close to operations, supporting the new management team and contributing to strategic decisions. The shift preserves the influence of the controlling family, founded by Candido Pinheiro, while signaling an attempt to renew executive leadership.
The episode, however, is far from over. Squadra, which holds a 6.98% voting stake, has taken the dispute into the governance arena by requesting cumulative voting and nominating independent board candidates, while openly advocating for asset sales and a broader strategic overhaul. With a shareholder meeting scheduled for late April, the situation is shaping up as a direct test of how far minority investors can influence the direction of one of Brazil’s largest healthcare operators.
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