Bradesco, one of the largest banks in Brazil, recently announced that ground-shaking changes are coming to its upper management. The current chairman of the board, Lazaro Brandao, will soon be retiring for good. This leaves open his position, which is slated to be filled by longtime Bradesco employee Luiz Carlos Trabuco Cappi. Although some are happy about the coming changes, others have expressed reservation. One of the greatest uncertainties for shareholders revolves around who Trabuco Cappi will tap for his own replacement. Whoever is selected, the changing of the guard could have widespread and longstanding consequences for the bank.
Lazaro Brandao steps down for the final time
At 92 years old, Lazaro Brandao is one of the oldest currently serving chairpersons in the world. First coming to work at Bradesco at the age of just 16, in 1943, Brandao has been with the bank for an astonishing 75 years. Over that time, he has participated in the transformation of Bradesco from a one-branch thrift institution in a small Sao Paulo town into one of the preeminent financial conglomerates of Latin America.
Between 1981 and the present, Brandao has been serving in executive roles of one form or another with the bank. Between 1990 and 1999, he served as both the chairman of the board as well as CEO, the only time in the bank’s history that both positions have been simultaneously held by one person for more than a short period. It was during this period that the bank experienced its most remarkable run of positive growth, going from a penny stock in the early 1990s to more than 300 times its previous value in 2009.
Read more: O Bradesco, de Brandão a Trabuco
This is one reason that so many shareholders are getting nervous about Brandao’s impending retirement. Even as the nonagenarian approaches an age that many do not live to, many of the bank’s most prominent shareholders have vocally encouraged him to continue staying on. But Brandao has been clear in his opinion that Trabuco Cappi will be more than capable of continuing on where he is leaving off. Himself having decades of experience with the bank, Trabuco Cappi has proven himself, again and again, to be one of the most capable and far-sighted leaders that the bank has ever had. Many people have referred to him as having a Midas touch, being able to turn failing business units around and almost invariably restore them to fantastic profitability. In fact, Brandao himself has often stated that the bank simply would have no chance of being where it is today had Trabuco Cappi not been one of its employees over the last four decades.
But the real cause for concern for many shareholders is who will take Trabuco Cappi’s spot as CEO. At first, there were rumors that the CEO may be looking to go outside the firm’s ranks to find its next CEO. However, Trabuco Cappi stated explicitly that he would stick to the company tradition of recruiting the next crop of executives from within the company ranks.
This means that there are just a few qualified candidates to potentially replace him. Although it may appear that all of the current junior-level executives have an equally probable chance of getting the job, those close to the process are zeroing in on one candidate in particular as being the overwhelming favorite.
Mauricio Minas is the firm’s 56-year-old chief technology officer. He was almost single-handedly responsible for the development of the Next banking platform according to globo.com. Those close to the action say that it is overwhelmingly likely that the tech aficionado Trabuco Cappi will be appointing the bank’s most tech-savvy executive to head up the bank.
Learn more about Luiz Carlos Trabuco Cappi: http://epocanegocios.globo.com/Empresa/noticia/2017/10/trabuco-o-importante-agora-e-olhar-para-os-desafios-do-futuro.html