Over the last few weeks, it has been announced that major changes are coming to the upper management at one of the largest banks in Brazil. The upper management at Bradesco is undergoing a major shakeup that will see a new CEO appointed by March of next year.
Luiz Carlos Trabuco, the current CEO of the firm, will be stepping down from the position he has occupied over the last 8 years. He will be replacing outgoing chairman Lazaro Brandao as the head of the board of directors, a job that he has been personally selected to do by the longtime chairman.
It will be up to Trabuco to appoint his own replacement, which he will be required to do by March of 2018. He has stated that the selection of the next CEO is an extremely important step in ensuring the company’s continuity. Trabuco has stated that he will take his time in selecting his successor, making sure that the right person for the job is picked.
Brandao’s departure marks the end of a prosperous era
The changes started with the announcement of Lazaro Brandao that he would be permanently stepping down from all roles with the company. At 91 years old, he is one of the oldest actively serving chairpersons in the world. Brandao has been with the company since 1943, an incredible career that has spanned nearly 75 years. Over that time, he has presided over the period of greatest prosperity in the bank’s history.
Starting in 1981, he was appointed CEO of the bank. Between 1990 and 1999, he occupied both the position of CEO and of chairman of the board, the only time in the bank’s history that one person has occupied both positions on more than a temporary basis. Between 1990 and 2009, he oversaw the growth of the firm from small regional player to a major national powerhouse of finance. Over that period of time, the bank’s stock price increased by a factor of more than 300 times, one of the most spectacular instances of growth in market capitalization of any company in Brazilian history.
Now, even as Brandao approaches the age of 92, there are many stakeholders in the company who are less than enthusiastic about his retirement. Many cannot conceive of a Bradesco that is not, at least in part, under the leadership of the inveterate financier. However, Brandao has stated that there is no chance that he will give an encore performance this time around. He has stated that he would like to spend more time with his family. Brandao has also made it clear that Luiz Carlos Trabuco is the best man for the job and the only one who has a chance to fill the large spiritual gap left by Brandao’s absence.
Who will be the next CEO?
This leaves the question of who the next CEO will be. Trabuco has stated outright that he will not be looking outside the firm to recruit the next CEO, keeping in line with a long-established company tradition of only appointing CEOs from within the bank’s own ranks.
Many people close to the process believe that there is one person, in particular, who is the favorite to be selected as Trabuco’s successor. Mauricio Minas, the 57 year old chief technology officer for the firm has been responsible for a number of the bank’s recent successes, including the rollout of the highly touted Next banking platform, which has proven so successful that it has been spun off into its own company.
If Minas is selected to head up the company, it will be more confirmation in Trabuco’s bullish outlook on tech and innovation.