Bradesco, the largest bank in Brazil, has recently made a string of announcements regarding changes that will be occurring with its upper management.
The company has stated that its current CEO, Luiz Carlos Trabuco, will be taking the place of outgoing chairman of the board of directors Lazaro Brandao.
Trabuco has gained the reputation as being a strong leader and solid deal maker. He was responsible for the 2015 acquisition of HSBC Brazil for $5.2 billion in cash, and he has led many of the bank’s departments to become strong profit centers.
He will assume the duties of chairman of the board of directors immediately and will also perform his usual duties as CEO while he selects his replacement. Trabuco has stated that he has until March of 2018 to choose his replacement, a process that he has ensured shareholders will be carried out with careful deliberation and enough time to make sure that the right choice is made.
Read more: O Bradesco, de Brandão a Trabuco
Trabuco will have large shoes to fill, however, once he assumes the role of chairman. The outgoing chairman, Lazaro Brandao, is somewhat of a living legend of finance in Brazil. His departure marks the end of a 75-year career, one of the longest of any currently serving chairpersons in the world. Over that time, he oversaw the growth of Bradesco from a small one-branch thrift institution into one of the most powerful financial conglomerates in Latin America.
Between 1981 and 1999, Brandao served as the CEO of Bradesco according to valor.com.br. He was also appointed chairman of the board of directors in 1999, a position that he held concurrently with that of CEO between 1990 and 1999, the only time in the history of the company that one person has simultaneously held both positions for anything longer than a trivial period of time.
All told, Brandao has been chairman for the past 27 years. Over this time period, the stock price of the bank has appreciated by more than 300 times, a result that has endeared Brandao to shareholders in a way that few chairpersons enjoy. In fact, Brandao enjoys the same levels of respect and admiration from shareholders that are normally reserved for legendary founders of companies, like Sam Walton and Warren Buffett.
So high is the esteem in which Brandao is held by the company’s many stakeholders that many of them expressed grave reservations about his departure, even as the elder statesman of finance approaches his 93rd birthday. But Brandao has been adamant in his staunch support of Trabuco, who he describes as being the best man for the job, anywhere on the planet.
Trabuco will, in turn, now need to select his successor. Although there were early rumblings that Trabuco may be considering going outside the firm to find his replacement, he quickly dispelled these rumors. He stated, outright, that he will not be deviating from company tradition and will be accordingly recruiting the next CEO from within the Bradesco ranks.
This would seem to open the possibility that any one of the seven junior-level executives currently serving in the corporate suite may be equally likely to be called upon to ascend to the company’s highest position. However, those close to the process believe that there is only one person who is likely to be named as successor to Trabuco.
Mauricio Minas is the firm’s 57-year-old chief technology officer. He has only been with the bank for approximately a half decade, but in that time, he has developed the Next banking platform, and he successfully oversaw the integration of all of HSBC Brazil’s tech assets into those of Bradesco. He is widely regarded to be the overwhelming favorite.