Luiz Carlos Trabuco, the current CEO of Grupo Bradesco, will be forced out of his slot by the 1st of March of next year. This comes just as Lazaro Brandao, the long-serving chairman of the board of the bank, announced that he will be permanently retiring from his position in a matter of weeks. Luiz Carlos Trabuco is slated to take his place as chairman, and Trabuco will be charged with naming his own replacement.
Trabuco has anticipated that he may occupy both the role of CEO and chairman on a temporary basis. But he has ensured investors and the business press that he will not hang on to both positions over the long term. He has also put to rest rumors that alleged that Trabuco was looking at hiring his replacement from outside the bank and possibly outside the country. One unnamed outlet said that candidates from both Goldman Sachs and Wells Fargo were being considered. But Trabuco has emphatically stated that he will not deviate from the company tradition of only appointing CEOs from within the Bradesco ranks.
Brandao leaves Big Shoes to Fill
At 91 years old, Lazaro Brandao is one of the oldest currently serving chair people of a major corporation, anywhere in the world. Hard as it is to believe, even as the nonagenarian financier rapidly approaches his 92nd birthday, the announcement of his impending retirement has led to serious consternation among many shareholders of the firm. So admired and respected is Brandao that his leadership is viewed by some as a nearly inseparable part of the firm. Without Brandao at the helm to sign off on important decisions, say some, the very soul of Bradesco will be eviscerated.
But others are confident, including Brandao himself, that Luiz Carlos Trabuco will be able to take the reins with aplomb and keep the bank on its true course towards destiny. Although Trabuco oversaw one of the more tumultuous periods of the bank’s existence, with the stock price falling by more than 80 percent, at one point, on his watch, he has also proven to be one of the most innovative and productive employees in the company’s history, with bragging rights to instituting a number of highly successful initiatives that have been relevant in the bank getting to its present position.
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Trabuco Rises through the Ranks
Luiz Carlos Trabuco first came to work at Bradesco in 1969, at the age of just 18. He proved himself to be a capable employee and quickly began rising up the hierarchy of the corporation. By 1984, he had put himself through school, getting a master’s degree in social psychology and a bachelor’s in business administration. Over the next 25 years, he would occupy a string of executive positions with the bank, making serious contributions to the business model and growing a few units to many times their revenues when he took over.
This eventually landed him the top spot at the bank. In 2009, he was named CEO, succeeding the legendary CEO Mario Cyrpiano. But the first six years of Trabuco’s tenure were a huge disappointment. Amid a terrible macroeconomic environment, Trabuco did all he could to stave off the losses of customers and market share.
Then, in 2015, Trabuco pulled off one of the biggest wins in Brazilian corporate history. He was able to complete the acquisition of HSBC Brazil for $5.2 billion in cash. This rocketed Bradesco back to the position of number-one bank in Brazil.
Today, as a result of Trabuco’s guidance, Bradesco has over 5,000 branches and $400 million in assets, making it the largest bank in Brazil by those measures.