At 91 years old, Lazaro Brandao is one of the oldest serving chair people of any major corporation in the world. The nonagenarian chairman of the board of Bradesco, one of the largest banks in Brazil, has announced that he will finally step down from the role that he has occupied since 1990. His retirement marks the end of an era for the bank, which saw some of the most explosive growth of any company in Brazilian history.
Brandao will be replaced by current CEO Luiz Carlos Trabuco
Although many questions remain as to whether or not anyone will be able to fill the giant shoes of Brandao, his replacement has already been named. Brandao told the board of directors that Luiz Carlos Trabuco, current CEO of the bank, will be his replacement. Trabuco, at 67 years old, has been past the retirement age of 65 for more than two years now. He was operating on a waiver personally signed by Brandao himself, which has allowed him to keep working past the mandatory retirement age stipulated in the bank’s bylaws. This was done to ensure that the integration of all of HSBC Brazil’s business units went smoothly. HSBC Brazil was acquired by Bradesco in 2015, in a virtuosic deal put together by Trabuco himself. Brandao felt that Trabuco may have been the only one who was knowledgeable enough about the acquisition to effectively oversee the integration of the acquired bank into Bradesco.
Brandao himself is something of a legend in Brazilian economy. His reputation is so entrenched and larger than life that serious questions have arisen, even as the old stalwart approaches his 92nd birthday, as to whether or not his retirement is a good thing for the bank. But Brandao has stated that, despite serious reservations on the part of both shareholders and members of the board, that he is intent on spending more time with his family. He has assured investors and shareholders that Trabuco has all of the right characteristics to take over as chairman, citing Trabuco’s lengthy and impressive career accomplishments with the bank, which include virtually creating the entire financial planning division himself and doubling the output of the insurance division.
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As Trabuco settles into his new role as chairman, he still has one major order of business before departing the executive suite. He must name a replacement. Although Trabuco has until March 1, 2018 to find his successor, many observers insist there are really only two viable candidates for promotion to CEO. For a while, it was speculated that Trabuco, himself promoted through the ranks of Bradesco, all the way up to CEO, may look outside the bank to hire his replacement. But he put that rumor to rest, explicitly stating that he would not deviate from company tradition and would promote the CEO from among the existing pool of executive talent.
This has left two names as possible replacements. The first is that of Alexandre Gluher, a 58 year old risk management executive. Although Gluher has been with the bank for nearly his entire career, those close to the process say that Trabuco is not big on using seniority as a measure of promotion-worthiness. Instead, they say, Trabuco is likely to promote someone with concrete results and the technical know-how to continue the modernization and migration of Bradesco’s business lines to the online environment.
This leaves Mauricio Minas as the likely replacement. In addition to the creation of the highly successful Next online and mobile banking platform, Minas has been instrumental in the integration of HSBC Brazil’s tech assets into Bradesco’s systems. As it stands, the smart money is on Minas becoming the next Bradesco CEO.
Search more about Luiz Carlos Trabuco: http://www1.folha.uol.com.br/mercado/2017/10/1926243-proximo-presidente-do-bradesco-saira-da-diretoria-do-banco-diz-trabuco.shtml