Luis Carlos Trabuco Faces Mandatory Retirement, Will Replace Lazaro Brandao

Luiz Carlos Trabuco, the inveterate CEO of Grupo Bradesco, has finally run out the clock on his time as CEO. The career banker, who has operated as CEO of the bank since 2009, has been allowed to continue to serve in that position, despite the fact that, at 67, he is two years older than the mandatory retirement age stipulated in the corporation’s bylaws. The reason for his ongoing tenure in the position was that he was being granted waivers by the chairman, Lazaro Brandao, due to the ongoing integration efforts of all assets and personnel previously under HSBC Brazil. The 2015 acquisition of that bank, orchestrated by Trabuco himself, led to a two-year period of integration of the two banks, over which Trabuco was the only one truly qualified to preside.

Brandao Takes His Final Bow

At 91 years old, Lazaro Brandao is one of the oldest currently serving chair people of any major corporation in the world. Still, such is the venerable financier’s record that, even as he approaches his 92nd birthday, many shareholders have expressed deep reservations about his retirement. But Brandao has stated that he will not be back for an encore this time around. The nonagenarian has said that he wants to spend more time with his family and ensure that younger talent has a chance to move up the ranks according to bloomberg.com.

But the lack of enthusiasm among shareholders for Brandao’s final departure is not completely unfounded. Brandao started working for Bradesco in 1943, at the age of 16. That was the first full year that the bank was in operation. Over the ensuing seven decades, both Brandao and Bradesco would grow up together. By 1981, Brandao had been named as CEO of the firm, and Bradesco itself had become a major regional player in the Sao Paulo banking industry.

But even as the bank was becoming a major regional force, Brandao had his sights on an even bigger prize. Over the next 36 years, Brandao took the bank from an institution of relatively minor national consequence to the undisputed heavyweight champion of the Brazilian banking space. Along the way, he oversaw an increase in the company’s stock price of more than 300 times. It is for this reason that many view the man and the bank as being all but inseparable in both body and spirit.

Read more: Next Bradesco president to leave the bank’s board of directors, Says Trabuco

But Brandao’s replacement, Luiz Carlos Trabuco, has a few rungs on which to hang his own hats. The current CEO was, himself, a lifelong employee of Bradesco. Trabuco first came to the bank in 1969, at the age of 18, when the bank was still a relatively small concern in the state of Sao Paulo. Like Brandao, Trabuco rose through the ranks through skill and hard work, reaching executive positions by the 1980s.

He was almost single-handedly responsible for the creation of the highly successful financial planning division of the bank, which enable the company to attract hundreds of millions in capital from wealthy investors. Trabuco also oversaw the explosive growth of the insurance unit, propelling it to eventually become the single largest underwriter of retail insurance policies in the country.

But Trabuco’s tenure as CEO has proven to be one of the rockiest in the history of Bradesco. Although he was able to redeem himself with the 2015 acquisition of HSBC Brazil, sending the stock price soaring by more than 2 and a half times, Trabuco does not instill the same level of confidence to investors and board members as did Brandao. However, this perception of a higher-risk chairman taking the helm may not be well-founded. Brandao himself has said that Trabuco is the right man for the job.

Learn more about Luiz Carlos Trabuco:https://www.brasil247.com/pt/247/economia/321974/Trabuco-Bradesco-vai-privilegiar-“prata-da-casa”-em-escolha-de-presidente.htm

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