Bradesco Not Looking Beyond its Talent Pool in Search of a new CEO

Posted on January 24, 2018 By

On October 11, 2017, Lazaro de Mello Brandao, 91, resigned as the chairman of the board of directors of Banco Bradesco SA. Luiz Carlos Trabuco, the bank’s CEO, was immediately named as Brandao’s successor. In a press conference that marked his resignation, Brandao stated he had wilfully resigned to allow a younger leader to preside over the board. His decision fosters Bradesco’s spirit of continuity and renewal.

However, it is not Brandao’s resignation that is putting Bradesco on the map but Luiz Carlos Trabuco’s succession. Luiz Carlos Trabuco was named the president of Bradesco in 2009. He assumed office as the fourth president of Bradesco, succeeding Marcio Cypriano. As per the bank’s bylaws, Luiz Carlos Trabuco is set to leave office in March. Although he will step down as president, he will continue being the chairman of the board of directors, representing Bradesco Foundation, the controlling shareholder of Bradesco.

Although many professionals (including those from outside Bradesco) were eyeing the vacancy that will be left by Luiz Carlos Trabuco, insiders who spoke in anonymity to Bloomberg disclosed that the succession contest had culminated in the naming of seven Bradesco’s staff. They include Mauricio Machado de Minas, Alexandre da Silva Gluher, Domingos Figueiredo Abreu, Josué Augusto Pancini, Marcelo de Araujo Noronha, Octavio de Lazari, and André Rodrigues Cano. They are high-ranking Bradesco’s staff in charge of departments and subsidiaries. Apparently, professionals not currently part of Bradesco have not been considered in the Luiz Carlos Trabuco’s succession contest.

Bradesco is sold on the idea that chairpersons, CEOs and other high-ranking executives should be appointed from within the company’s existing talent pool. It is an idea that gained prominence courtesy of Brandao. According to him, bringing professionals from outside Bradesco, at the expense of Bradesco’s employees, to fill key leadership positions amounted to discouraging Bradesco’s staff. In addition, Brandao supported his stance with the argument that promoting a Bradesco’s staff to a leadership position would be less costly for the company as it would be unnecessary to spend resources training himher on Bradesco’s culture.

Luiz Carlos Trabuco

He is the serving chairman and the outgoing CEO of Banco Bradesco SA. Luiz Carlos Trabuco seems to be following in Brandao’s footsteps. Both started out their careers as clerks at Bradesco and ascended the corporate ladder to join the bank’s higher management team. In fact, just like Luiz Carlos Trabuco now, Brandao was both the chairman and the CEO of Bradesco between 1991 and 1999.

Before being appointed the CEO of Bradesco, Luiz Carlos Trabuco was the president of Bradesco Seguros, an insurance subsidiary of Bradesco. Pundits are convinced that it is Luiz Carlos Trabuco’s performance at Bradesco Seguros that prompted Bradesco’s appointing authority to name him the fourth CEO of the bank. Luiz Carlos Trabuco spearheaded the expansion of Bradesco Seguros. At the time he exited the subsidiary, Bradesco Seguros had doubled in size. In addition, Seguros’ revenue contribution to its parent company increased by five percent. What’s more, Luiz Carlos Trabuco leveraged his position to contribute to the launching of Bradesco’s shares on the New York Stock Exchange.

Luiz Carlos Trabuco’s tenure as the CEO of the Osasco-based Bradesco has seen the bank acquire several smaller banks as well as receive numerous awards. Just a year into office, Bradesco acquired Ibi Brazilian, and in 2011, Bradesco purchased Ibi Mexican. In the same year, Bradesco was ranked high among the world’s “500 Greenest Companies.” However, it is the 2015 acquisition of the Brazilian branch of HSBC that marked a significant milestone in Luiz Carlos Trabuco’s tenure. The purchase, estimated at $5.2 billion, significantly moved Bradesco closer to its rival, Itaú Unibanco.

You may also read “Bradesco begins selection of new president” for more.