Luiz Carlos Trabuco, the CEO of Bradesco who was responsible for one of the greatest coups in Brazilian business history, has announced that he will soon step down from his role as CEO as his tenure extension runs out. The inveterate banker, who, in 2015, completed the acquisition of HSBC Brazil for $5.2 billion in cash, the largest transaction in Brazilian corporate history, has stated that he will leave his role as CEO with the bank by no later than March 1 of 2018.
End of an era
Trabuco’s departure will mark the end of a tumultuous yet fascinating era for the bank. Stepping aside at the same time will be Lazaro Brandao, one of the oldest active executives in Latin America and among the most respected economists in Brazil. Brandao, 91, has stated that the reasons for his departure are to ensure continuity of operations of the bank and allow for the ascendance of some of the younger executives into the role of CEO. Brandao has said that his decision to retire was completely his own and he was not approached by any members of the board to do so.
Having worked at the bank for an incredible 75 years, Brandao got his first position with Bradesco at the age of 16, in 1943, the year the company was founded. He held the position of chairman of the board since 1990 and had served as CEO of the firm between 1981 and 1999. Aside from Trabuco himself, Brandao was one of the people most responsible for the rocket-like growth of the firm between the early 1980s and late 2000s.http://ultimosegundo.ig.com.br/os-60-mais-poderosos/luiz-carlos-trabuco/52382e759cd61ea113000004.html
Who will replace Trabuco?
Bradesco’s corporate bylaws state that Trabuco will be the one solely responsible for choosing his replacement. Although Trabuco has been coy about who is likely to follow in his footsteps, observers say that the most likely candidates are Mauricio Minas and Alexandre Gluher. Although the latter has quite a bit more seniority, the smart money seems to be on Minas as being appointed successor to Trabuco.
Minas, a 58 year old IT executive with the firm, has worked for Bradesco for decades. He has been the one who has overseen the technological integration of all of HSBC Brazil’s systems with those of Bradesco. He was also responsible for the Next platform, an internet banking product that eventually was spun off into its own company. The Next platform has widely been credited with saving Bradesco during its troubles throughout the 2010s, giving it a crucial competitive edge among tech-savvy banking clients, who previously had few options for quick, mobile banking applications.
Trabuco will still be a power player
Many experts say that, while Trabuco will no longer be acting in a strictly executive role, he will still exert a tremendous amount of influence. Moreover, the position that he was able to put Bradesco in with the acquisition of HSBC has positioned the bank so favorably that whoever replaces him will have a job that is considerably automatic.
However, despite what many critics were saying about Trabuco during the tough times of the early 2010s, he has been a huge influence over the bank and its strategic path. He will likely continue as a guiding force for the bank in the years to come, when the biggest question may be to what extent Bradesco can completely corner the Brazilian banking and finance market, creating a soft monopoly that could prove to be a huge boon for investors.
While the departure of both Trabuco and Brandao from their respective old jobs marks the end of an era for Bradesco, the new era may be its best yet.