Whoever Bradesco’s Incoming President Will BE, He/She Will Find A Competent Ally in Luiz Carlos Trabuco
November 10, 2017
About a week ago when former Bradesco chairman Lazaro Brandao announced his decision to vacate the position of chairman of the board, the Brazilian bank saw no one more deserving for the position than Luiz Carlos Trabuco.
Trabuco has been the president of the giant bank for the last seven years and the vice chairman of the board for the last three years. Given his immense contribution to the bank over the course of the last 48 years, no one is more deserving to take over the reins from Lazaro Brandao. However, as a consequence of him being named the chairman of the board, a new president will have to be picked to lead the Bradesco group.
The incoming president will become only the fifth ever president in its over seven-decade history. The reason Bradesco has had so few leaders despite its relatively long existence, is the fact that all of its presidents thus far have been very effective leaders thus negating the need for leadership changes midway into their tenures. The bank will be looking to accomplish the same with its next president and is consequently planning to pick him/her from among its current senior executives. Additionally, the mandate of the president will be slightly amended as he/she will no longer have a seat on the bank’s board.
However, Bradesco’s board is not in any hurry to name a new president. The bank’s bylaws expressly stipulate the time during which the board should make succession decisions relating to the presidency. That duration puts the expected time of appointment for the next president at March 2018. Until then, the bank will remain in the capable hands of Luiz Carlos Trabuco, who will serve as both president and chairman of the bank.
The immediate responsibility of Luiz Carlos Trabuco as the incoming chairman will be to on the expansion work that he and Lazaro Brandao had commenced with the aim of making Bradesco the largest private back in the country again. For a large portion of its existence, Bradesco was the largest private bank in the country. However, in 2008, the bank lost the position to a new rival, Itau Unibanco. While losing the dominant market position greatly wounded the bank’s pride, Luiz Carlos Trabuco has for the last four years been working towards reclaiming the top position and has, in fact, gained significant ground on the larger competitors.
The 2015 acquisition of HSBC Brazil by Bradesco for over 5 billion dollars will forever remain the shrewdest piece of business done by Luiz Carlos Trabuco during his tenure. While there is no escaping the fact that the price tag associated with the acquisition was huge, even for Bradesco, the deal has, in turn, resulted in great returns for Bradesco. The bank has grown its customer-base to well over 30 million, increased is asset-base to close to $400 billion and expanded its branch network to approximately $5,500 branches. Consequently, Bradesco is now closer to Itau Unibanco than it has ever been since 2008. It is a realistic possibility that through cohesive work, Luiz Carlos Trabuco and the incoming president could help Bradesco retake the dominant position in the next few years.
The new president will also get a lot of assistance in the position as Luiz Carlos Trabuco has long had a passion for mentoring others. As soon as he was named Bradesco’s president in 2009, he set up a corporate university to facilitate the training of the bank’s executives in leadership skills. It is a tradition that has practiced by of the bank’s previous four presidents.
Search for more information about Luiz Carlos Trabuco: https://g1.globo.com/economia/negocios/noticia/sucessao-no-conselho-do-bradesco-foi-um-ato-planejado-diz-trabuco.ghtml