Leadership changes can make or break a company. That is the primary concern many are having at Bradesco as the Brazilian bank prepares to select a new president. It has, however, been noted in the past that where there has been a stabilizing force during the succession period, the transition to a new leader is often quite smooth. This stabilizing force at Bradesco is expected to be provided by the new chairman of the board, Luiz Carlos Trabuco.
Trabuco has been the bank’s president since 2009 and also served on the board as the vice chairman. He is expected to rely on his extensive experience to ensure that Bradesco’s profitability is not affected as a result of selecting a new president.
The current succession process at Bradesco was initiated by the retirement of Lazaro Brandao in early October 2017. The veteran banker was previously serving as the chairman of the bank. He had the most extensive professional career at Bradesco having worked there for 74 years – that is, since the bank was founded in 1943. He had held most senior leadership positions at the bank and overseen some of its most prosperous times. However, his decision to resign is quite understandable considering the fact that he is now close to hitting the age of 92. His resignation was well received by, above all, members of his family.
The process of selecting the new president at Bradesco is expected to take a while. It has been expected that a decision on the matter will be made in March 2018, when a shareholders’ meeting will be held. For the next few months, therefore, Luiz Carlos Trabuco will assume the responsibilities of board chairman, while still serving as its president.
A consequence of this long selection process is that there will be a lot of talk and speculation on who will become the next president. This talk will likely continue well into 2018, and Luiz Carlos Trabuco must be steadfast to ensure that it does not negatively impact the Bradesco Brand.
Despite all the uncertainties surrounding the leadership selection process, it is known for sure that Luiz Carlos Trabuco’s successor will come from within bank. This is a tradition that has been long-held at the bank. The bank’s four legendary presidents thus far have all been selected from within the organization, with one being its founder. The senior executives, particularly the vice presidents, are deemed to have the greatest chance of becoming the next president. Interesting to note also, each of the vice presidents at the bank has been there for a long period of time.
The decision to select Luiz Carlos Trabuco as the next chairman seems quite logical, if not the most natural. With Lazaro Brandao leaving, Trabuco is now the most experienced employee at the bank, having worked there for close to five decades.
He first joined the bank as a clerk in 1969. Additionally, he has also been extensively mentored by Brandao over the course of the last few years. In 2014, Brandao specifically picked him to become the vice chairman of the board. This time on the board, learning directly from Brandao, has no doubt prepared him for the position he is about to step into.
Given how successful Luiz Carlos Trabuco has been in his previous endeavors at Bradesco, one can expect the succession to be seamless. The incoming chairman will also be helped by the fact that the Brazilian economy seems to be finally making positive gains after two years of recession and stagnation. He/she will, therefore, have the support and conducive environment to undertake some risks.
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