In the business world, smooth leadership transitions are compulsory. Anything short of a seamless transition can bring down even the oldest organizations. Consequently, when Bradesco highest-ranking employee Lazaro Brandao decided to leave the bank last year, many were curious to know how the bank would fair. However, the bank’s board quickly promoted the president, Luiz Carlos Trabuco to the Brandao’s vacated post of chairman. Trabuco is now tasked with ensuring that Bradesco has a smooth next few months as it restructures its leadership structure.
Saying Goodbye to a Seven-Decade Career
It was not easy for Lazaro Brandao to resign from his post at Bradesco. He had been the bank’s chairman for a total of 27 years. This 27 year-rein coincided with some of the most significant gains made by the Brazilian bank including taking over Itau Unibanco and subsidiary Bradesco Seguros growing to become the largest insurance provider in the country. Before that he had served as the bank’s president, having been the founder, Amador Aguiar’s second-hand man for decades before that. However, with age catching up with him, Brandao decided to step aside for the next generation of leadership. Brandao is now aged 91 and stated at the time of his resignation that his family was particularly happy that he would now be spending a lot more time with them.
Selecting Bradesco’s Fifth President
Lazaro Brandao’s resignation has also created the need to appoint a new president. This need stems from the fact that Luiz Carlos Trabuco cannot serve as both the president and chairman of a financial institution as large as Bradesco for a long period. Fortunately, Bradesco has very clear-set guidelines on how the process of selecting a new process is supposed to proceed. The decision is typically made by the board of directors by way of voting. The bank votes on the appointment a few weeks before the annual general meeting at which the new president is announced to the shareholders. The next meeting of this kind is scheduled for March 2018. Therefore, for at least the next few weeks Luiz Carlos Trabuco will simultaneously hold the two-highest positions of leadership at the bank – those of president and chairman.
Another of Bradesco’s strong traditions when it comes to appointing a president is sourcing him/her from within the Bradesco group. All of the bank’s previous four presidents have either all been the founder or long-term employees. Equally, the next president is expected to be a senior executive who has been at the bank for a considerable amount of time. Given the high caliber of executive vice presidents currently at Bradesco, the bank will likely have an easy time finding a competent replacement for Luiz Carlos Trabuco.
The Journey Continues for Luiz Carlos Trabuco
Two years ago, it seemed almost certain that Luiz Carlos Trabuco’s time at Bradesco was coming to an end. Trabuco was scheduled to hit the mandatory retirement age 65 in 2016 and leave the bank after that. However, since the $5 billion acquisition deal of HSBC Brazil that he had initiated a year earlier was nowhere near completion, the bank’s board decided to extend the retirement age by a further two years. Going by the board’s extension decision he was meant to leave the bank later this year. However, since his newly appointed post does not carry any retirement age, Trabuco could be Bradesco chairman for decades to come.
Even now as chairman of Bradesco, Luiz Carlos Trabuco will still be eager to complete some of the objectives he had set up while being president. He will, in particular, be looking to establish Bradesco as the leading private lender in the country as it once was.