A leadership reshuffle at Bradesco has created a vacancy in the position of president. The previous president, Luiz Carlos Trabuco is vacating his position to become the bank’s board chairman. Trabuco is taking over from Lazaro Brandao, who after 74 years at the bank decided to retire four weeks ago. The process for selecting Luiz Carlos Trabuco’s successor has now begun in earnest.
Luiz Carlos Trabuco will, at least for the next four months, remain the president of Bradesco. This is because the bank’s charter directs that the next president is selected in March 2018. The next few months, therefore, provide members of the Bradesco board with the opportunity to arrive at the best choice – after all, it is a process as opposed to a single step. Trabuco will at the same time fulfill the duties expected of the board chairman. That, however, is not expected to be a problem as for three of the last nine years that he has been Bradesco president, he was also the vice chairman on the board.
The next Bradesco president is currently working at the bank. Selecting leaders from among the crop of employees within the group is a tradition that has been practiced throughout its entire existence. That trend is expected to continue with the next president. While there are a number of candidates at Bradesco thought to have a serious chance at being next president, one who deserves mentioning is Alexander Gluher. The chief risk officer joined the bank in 1976. He is most known for his integral participation in completing Bradesco’s 2015 purchase of HSBC’s Brazilian operation.
Read more: Next Bradesco president to leave the bank’s board of directors, Says Trabuco
Luiz Carlos Trabuco’s time at Bradesco is now expected to last a few more years despite initially being meant to retire in 2016. The bank’s charter implicitly stated that the retirement age for presidents was 65. That restriction placed Trabuco’s retirement at 2016 according to bradescori.com.br. However, the bank decided to further extend his stay at the bank by amending the charter to 67 from 65. The primary motivation for the board to extend Trabuco’s stay as president was the HSBC acquisition initiated in 2015.
Bradesco’s acquisition of HSBC was valued at a high $5.2 billion. Not only was the acquisition the largest transaction undertaken by Bradesco in its seven-decade existence, but it was also the largest acquisition in Brazil’s financial sector for a long time. Once the acquisition was complete, it was estimated that Bradesco would become the undisputed second largest private bank in the country. It would also come quite close to the leading bank in the segment, Itau Unibanco. As the primary negotiator, Luiz Carlos Trabuco played a critical role in the initiation of the deal. By 2016, however, integration between Bradesco and its new acquisition had not been completed.
Consequently, the bank decided to extend Trabuco’s stay to ensure that he saw the deal through to its completion.
Others also speculate that the reason’s the retirement age was amended was to prepare Luiz Carlos Trabuco as Lazaro Brandao’s successor. It is not a hidden fact in Brazil’s financial sector that Trabuco is a good banker. In fact, the previously Brazilian president, Dilma Rousseff offered Luiz Carlos Trabuco, the position of the country’s finance minister. However, while Trabuco acknowledged that being offered the position was an honor, he could not accept it due to commitments at Bradesco. By this time Trabuco had already been successfully nominated by Lazaro Brandao to become his deputy on the board. This move was no doubt mean to prepare Luiz Carlos Trabuco to take over the board a few years down the line.
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