Leadership and Governance

Our corporate philosophy necessarily includes the importance of sound corporate governance and compliance with laws, regulations and our own internal policies. The Pilgrim’s Board of Directors, which includes five independent members and four internal members, sets high standards for our team members, officers and directors, and ensures that credible, expert voices help guide the direction of our business. The Board is responsible for reviewing the overall operational, financial and strategic plans and performance of the company, and the process by which financial and non-financial information about the company is provided to management, the Board and the company’s stockholders. In addition, the Board selects and evaluates senior executives and oversees appropriate policies of corporate conduct and compliance.

The Ethics and Compliance Department (ECD) is led by the Head of Ethics and Compliance, who has a dual reporting structure to the Pilgrim’s Board of Directors and the Chief Legal Officer (CLO) for JBS USA.

The ECD is responsible for managing a number of essential compliance functions. First, the ECD develops, administers and trains on the Code of Conduct and Ethics and related policies, including anti-bribery/anti-corruption, anti-trust/competition, international trade and sanctions, conflicts of interest and hospitalities (gifts, business meals and entertainment). For example, all relevant Pilgrim’s team members receive in-person training on the anti-bribery laws of the U.S., the U.K. and Mexico. Second, the ECD manages the Pilgrim’s Ethics Line, and actively promotes and encourages its use through the “Speak Up Campaign.” Third, the ECD monitors compliance through investigations, assessment and analysis of Ethics Line matters, and one-on-one consultations with employees regarding specific situations. Fourth, Pilgrim’s also requires third party vendors to follow our same high standards.  Specifically, Pilgrim’s provides its third-party vendors with its Supplier Code of Conduct, which requires third-party vendors to commit to acceptable standards of business conduct and integrity, and comply with all applicable laws, regulations and rules. Fifth, in 2021, Pilgrim’s established an Ethics Committee comprised of senior executives who are responsible for promoting a company-wide culture that encourages ethical conduct and decision-making; compliance with the law, regulations, and policies; and promotion of senior management’s commitment to support the compliance function.

ESG Governance

Our newly-formed ESG Committee of the Pilgrim’s Board of Directors assists in overseeing the company’s environmental, social and governance policies, strategies, and programs, such as climate change impact, energy conservation, human rights, diversity and inclusion and employee health, safety and well-being. The Committee recognizes that Pilgrim’s executive officers and other senior managers are responsible for assessing ESG matters that may impact the company as well as managing ESG-related efforts. Through its oversight role, the Committee works to ensure the company’s approach and funding are designed and implemented by Pilgrim’s executive officers and other senior managers in a matter consistent with the company’s ESG goals, and are functioning properly.

Committee duties include, but are not limited to, monitoring external trends, overseeing and providing feedback on strategy and policy development, ensuring sufficient resourcing, reviewing goals and monitoring progress, evaluating relationships with key stakeholders, providing input on identification, assessment, and management of risks, reviewing reporting and disclosures, and evaluating shareholder proposals and providing recommendations to the Board.