A new succession race is looming in the second largest bank by market value in Brazil, Banco Bradesco SA. The bank chairman, Lazaro de Mello Brandao, announced his resignation to the board, after serving the bank in that capacity for more than 25 years.
At 91 years of age, Brandao is one of the oldest bank chairmen in the world. He had served in the bank from when he was 16 years old when he served as a clerk and has therefore served in the bank for a cumulative period of 75 years. During this time, Brandao also occupied the position of the company’s CEO, between 1981 to 1999. In his tenure at the helm of management, he has entrenched a management culture where in-house talents are valued and given preference when it comes to occupying senior positions in the company.
After his resignation, his position was taken over in an acting capacity by the current CEO, Luiz Carlos Trabuco. Trabuco shall hold this position until the company’s board of directors appoints a new chairperson by March of this year, if not earlier. According to the company’s bylaws, the holder of the position of the CEO should have a maximum age of 65 years old, and this meant that the tenure of the current CEO should have ended last year. However, due to some critical operation that Trabuco was overseeing at that time, the company changed its bylaws and capped the maximum age of a CEO at 67, giving him two more years to serve. However, that means that after the bank gets a new chairperson this year, they will have to go through the process of replacing their CEO next year.
The resignation of Brandao has ignited a hot race for his replacement which should have concluded by March of this year. According to the bank’s policy where they respect and give preference to their pool of talent, the new chairperson will get picked from the bank’s list of current senior executives. While Brandao and the company insisted that they have not chosen the replacement yet, there is a lot of talk about who might just replace one of the oldest chairpersons in the banking industry.
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One of the name that is becoming popular in the succession race is that of the bank’s vice president in charge of technology, Mauricio Minas. He has brought about a whole technological revolution in all operations of the bank, played a crucial role in integrating HSBC, which the bank acquired recently, into the bank’s operations, as well as helping to develop a digital bank for the institution according to economia.estadao.com.br. Gluther, an experienced executive who played an integral role in the acquisition of HSBC, and Josue Pancini who has served as a vice president for a long time, are other names that are being fronted to take up the position. However, the pool of possible replacements is still significant, given that the bank has six vice presidents, all of whom have a strong track record.
As he also prepares to retire, Trabuco is the fourth person to occupy the presidency of the bank. He has provided able leadership to the bank which has almost R$900 billion in assets and which has close to 27 million account holders. His birthplace is Marilia and graduated from the School of Sociology of Fundacao, and later with a postgraduate degree in Socio-Psychology. He began working at Bradesco in the year 1969, where he has risen through the ranks, from being a department director in 1984 to being appointed a Managing Director Executive in 1998, and ultimately in 2003 when he took over the management of Bradesco Seguros until he later got elected to the presidency.