In the business world, the ultimate sign of managerial excellence is the ability to maintain profitability in the face of mounting challenges. Current Banco Bradesco chairman and president, Luiz Carlos Trabuco has faced and conquered teething troubles on numerous occasions throughout his 49-year stay at the bank. Consequently, when Banco Bradesco lost its longest-serving chairman, Lazaro Brandao, three months ago, the board was quick to name Trabuco as his replacement despite the fact that he already held the demanding position of president. In the three months since Luiz Carlos Trabuco has shown that he is more than equal to the demands of both positions. Fortunately, however, with a new president expected to be announced later in March, he will soon only have to concentrate on chairing the lender’s board.
Lazaro Brandao’s Cordial Departure
Lazaro de Mello Brandao, arguably the oldest banker in Brazil, announced his departure from Banco Bradesco on October 11, 2017. The 91-year old, however, did not completely dissociate himself from the organization he has worked at for over seven decades as he is still the president of Fundacao Bradesco – Banco Bradesco’s charitable institution. He was appointed Banco Bradesco president in 1981 and took over the position chairman from the founder, Amador Aguiar nine years later. He concurrently held the two powerful posts for nine years before ceding the title of president to Marcio Cypriano in 1999. Both his tenures as president and chairman were marked by aggressive expansion drives by Banco Bradesco that saw it grow from a mid-tier financial institutions to one of the largest banks in the country. Mr. Brandao’s resignation was well received by all Banco Bradesco stakeholders and most especially by his family. He will now have a lot more free time to spend with his eager kin.
Selecting Luiz Carlos Trabuco’s Replacement
Banco Bradesco is a lot bigger today than it was in 1990. As such, it would not be feasible to have one individual serve as both chairman and president on a long-term basis. The Banco Bradesco is, therefore, engaged, in the process of choosing the bank’s next president. Once it has voted on the matter and settled on a name, the board will announce the appointment at the shareholder’s meeting planned for March. Until then, all industry observers can do is speculate who will win the succession race. Going by Banco Bradesco’s management culture of making senior leadership appointments from the talent pool already in the organization, Trabuco’s replacement will almost certainly be chosen from among the lender’s current vice presidents.
Luiz Carlos Trabuco’s Immediate Objectives as Chairman
Known for being determined, shrewd and innovative Luiz Carlos Trabuco will no doubt be looking to hit the ground running in his new position. Among his most pressing concerns will be streamlining Banco Bradesco’s leadership structure. In addition to selecting a new president, he might have to oversee an expansion of the bank’s board. Despite Banco Bradesco being considerably bigger than it was a few decades ago, the board has remained small at eight members. An expansion would lighten the burden on the current board members and allow for the infusion of fresher ideas.
There is also the matter of Banco Bradesco’s ongoing rivalry with Itau Unibanco. While being the second-largest private lender in a market as big as Brazil is not something to be frowned at, Banco Bradesco has long-held the desire to be first. In fact, before the creation of Itau Unibanco in 2008, Banco Bradesco was the holder of the enviable position. After making significant gains on the bank’s larger competitor as president, Trabuco will be itching to finish what he started in his new role.