Looking for a new chief executive officer can be difficult, especially for an international company. Finding the right person who can blend in with the established corporate structure isn’t easy. That’s why Banco Bradesco, the number two private bank in Brazil, is looking inside the bank for a replacement for 67-year-old Luiz Carlos Trabuco. Bradesco’s age limit is 67, so Trabuco has to move on. But he’s not leaving the bank that gave him a trainee position in 1969. Trabuco is moving into the Chairman of the Board’s office.
The oldest chairman in Brazil’s banking industry, Lázaro de Mello Brandão is heading into the banking sunset. Some people say it’s about time. Lázaro de Mello Brandão is 91-years-old. But he still has a sharp mind when it comes to banking. The people who know Brandão say he acts like he just turned 70. In fact, Brandão is going to keep his desk at the bank just to show people he’s still capable of making important joint decisions. But Luiz Carlos Trabuco will take over all the chairman duties as well as function as the president and CEO until a new CEO surfaces from the executive pool in March 2018.
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There are seven qualifies candidates, and all of them have a good relationship with Luiz Carlos Trabuco. Each man has a list of impressive banking accomplishments, so picking one man is not that easy. Plus, filling Trabuco’s shoes as the CEO is a challenge. Trabuco is a long-time Bradesco employee. He found a home when he left the University of Sao Paulo with a degree in philosophy. Trabuco and his executive team didn’t let the bank go into a tailspin when the country took a nose dive and sank into the worst recession in more than 90 years. That’s why he is relying on the executive team to take over and continue the bank’s financial success.
The seven candidates are tech executive, Mauricio Machado de Minas. Chief risk manager, Alexandre da Silva Glüher and Octavio de Lazari, the current president of the bank’s insurance division, Seguros. Human Resource executive Andre Cano, and operations chief, Josué Augusto Pancini are on the list. And so is investment executive, Marcelo Noronha. Chief loan officer, Domingos Figueiredo Abreu is a solid candidate as well. All these men have what it takes to be Bradesco’s next president and CEO, but some Bradesco employees say Octavio de Lazari will follow the same path as Trabuco. Mr. Trabuco was the president of Seguros from 2003 to 2009. At the end of 2009, Luiz got the president’s job, and the word is, the same thing could happen to Octavio de Lazari.
Wall Street is backing Bradesco’s internal hunt for a new CEO. More investors are buying the bank’s stock now that it is trading for under $10 a share. Wall Street is pushing the stock because of Brazil’s economic recovery as well as the bank’s 2017 performance. But there are challenges ahead for Bradesco. Digital banking is on fire in Brazil according to globo.com. Bradesco needs to step up their digital presence as well as find a solution for the bank branches that are no longer profitable. The 2015 acquisition of HSBC’s Brazilian division was a great strategic move, but it did leave branch duplication issues on the table. And those issues can be costly, according to Wall Street financial analysts on folha.uol.com.br. That’s why some insiders are betting on IT maven, Mauricio Machado de Minas. Mauricio set up Bradesco’s digital banking platform, Next, with Trabuco, so he knows how to keep the bank relevant in the techno banking world.
Visit terra.com.br for more information about Luiz Carlos Trabuco.