Every few years in a company’s life, leadership has to change hands. It is an integral process in every organization hoping to maintain a perpetual existence. The latest organization to find itself in this position is Banco Bradesco. The Brazilian bank last month replaced long-serving chairman, Lazaro Brandao with Luiz Carlos Trabuco. The bank is now looking for a new president to replace Luiz Carlos Trabuco – the man who has been serving as president for the last eight years.
Who will be the New President?
According to istoedinheiro.com.br Banco Bradesco is in no hurry to name a new president. According to the bank’s bylaws, Luiz Carlos Trabuco’s replacement will be announced at the next shareholders’ meeting, next set for March 2018. That, however, has not stopped people from speculating on who the next president might be. Going by Banco Bradesco’s culture, it is widely expected that the president will be chosen from among the top crop leaders currently serving at the bank. In particular, the most experienced vice presidents are considered by many to be the strongest candidates: Alexander da Silva Gluher, Mauricio Machados Minas, Octavio Lazari and Josue Pancini
Read more: Bradesco to Choose Board Member as New President, says Trabuco
Striving to Remain Competitive
Succession periods can be quite problematic for organizations. Competitors can sometimes take advantage of the uncertainty around such periods to wrestle away market share. For the last few years, Banco Bradesco has been engaged in a strong battle with Itau Unibanco for the top position among private banks. For more than 50 years, Banco Bradesco was the holder of the coveted position but unfortunately lost it to Itau Unibanco in 2008. Itau Unibanco bust into the scene in 2008 when mid-tier banks, Banco Itau and Unibanco merged to form a gigantic financial institution. In the nine years that have passed since Banco Bradesco has gained significant ground on its largest competitor. The 2015 acquisition of HSBC Brazil, in particular, drew Banco Bradesco closer to regaining its lost position. The $5.2 billion deal took the bank past Itau Unibanco in the areas of the number of customers, branch network coverage and the total value of investments. Banco Bradesco, however, still lags behind in some important metrics, including asset value. As such, with Banco Bradesco being closer than ever to overtaking Itau Unibanco, it is of paramount importance that the process of selecting a new president goes on smoothly.
Bigger Role for Luiz Carlos Trabuco
To ensure that Banco Bradesco remains stable throughout the entire succession process, the bank’s board has decided to retain Luiz Carlos Trabuco as president for the next few months. Therefore, he will be serving as both the chairman and president of the large financial institution. His continued stay as president, albeit in an acting capacity, will settle any nerves that customers and investors may have. After all, he is the most experienced employee at the bank, having been working there for close to five decades. He has also been at the center of innovative moves made by the Bradesco brand in the last couple of years.
As the new chairman, in addition to overseeing the process of choosing a new president, Luiz Carlos Trabuco will also oversee the expansion of the bank’s board. The board is currently constituted of eight members – a figure that is increasingly being seen as too small relative to the bank’s size. While it is not known exactly when this expansion will take place, the bank would be best served if it occurred sooner rather than later. An expanded board will assist both Luiz Carlos Trabuco and the incoming president with fresh perspectives and ideas.
For more information about Luiz Carlos Trabuco, just click here.