Why Many Agree with Bradesco’s Choice of Trabuco to Command the Board of Directors
Many professionals yearn to work for high ranking institutions in any industry. Banco Bradesco SA is one of the leading banking and financial services firms in Brazil currently prospecting for a new chief executive officer. While many professionals in the banking industry are eyeing the position which will be declared officially open in March next year, Bradesco has not minced its words to the effect that it will appoint one of its employees to take the position as opposed to considering professionals from competing firms or related firms. Over the years, the bank’s culture regarding the filling of leadership positions is biased in favor of Bradesco’s employees. The current CEO, Luiz Carlos Trabuco stressed the bank’s position on the succession issue in a news event held on October 11. In the same news event, Lazaro de Mello Brandao, former chairman, announced his resignation, and the bank declared the vacancy filled with Luiz Carlos Trabuco announced the new chairman.
With the bank stating it will consider only its high ranking executives to succeed Trabuco, some Bradesco’s staff are seen as the front-runners in the race. 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. All of them are in charge of essential departments such as the human resources departments, the IT department, Bradesco Seguros, etc. They are not new to the company as most of them have served for a considerable period at the bank. The average time that the seven have been at the Osasco based bank is 31 years. Strikingly, they are all in their 50’s; clearly, Bradesco is not ready to appoint a “young” executive to preside over the day-to-day running of the institution.
Trabuco, whose term as CEO will end early next year, is currently serving as the CEO and chairman of Bradesco SA. He succeeded Brandao,91, who was categorical that his resignation was a personal decision to give room for the younger Trabuco—66—to preside over the board of the bank. Brandao joined the bank in the early 1940’s and discharged his duties in various capacities including presidency (1981-1999). At the time of his resignation, Brandao had served the bank for close to 74 years. Both as CEO and president, Brandao was a proponent of nurturing junior Bradesco’s staff to take over leadership positions of the firm as opposed to poaching leaders from other companies to fill such positions.
About the New Chairman, Trabuco
Many agree with Bradesco’s choice of Trabuco to command its board of directors as the executive has demonstrated excellent performance since he joined the bank in 1969. He was a mere clerk when the bank hired him. However, his performance propelled him up the corporate ladder. His first promotion was an appointment to serve as marketing director. He leveraged the position to modernize the bank’s communication and establish a closer relationship with the media.
After eight years as marketing director, Trabuco was appointed to lead the bank’s subsidiary, Bradesco Vida e Previdência. In 1998, he was named the managing director of Bradesco Seguros; a year later, executive vice president. And in 2003, he assumed the presidency of Seguros, an insurance subsidiary of Bradesco. His work as the president of the subsidiary earned him the overall presidency of Bradesco in 2009.
As president, Trabuco established the Unibrad Corporate University to enable Bradesco’s staff to achieve not only the bank’s goals but also personal goals. He also spearheaded the purchase of the Brazilian Branch of HSBC for $5.2 billion. The acquisition was meant to move the bank closer to its competitor, Itau Unibanco. Know more: http://insiders.morningstar.com/trading/executive-profile.action?PersonId=PS00003Y11&flag=Executive&t=XNYS:BBD®ion=usa&culture=en-US&cur=