Big changes are coming to Grupo Bradesco, one of Brazil’s largest banking institutions. Recently, it was announced that Lazaro Brandao, the 91-year-old chairman of the board will soon be stepping down permanently.
In his place will be Luiz Carlos Trabuco, the long time CEO of Bradesco, who has spent his entire career with the firm. This transition of power raises questions as to who will ultimately replace Trabuco as CEO. Although no one knows the answer, the list of possible candidates has been considerably narrowed.
The next CEO will be recruited from within
For a while, it was widely rumored that Trabuco would go outside the firm to recruit the next CEO. Trabuco himself quickly put this idea to rest when asked, stating that he would not break from the time-honored company tradition of promoting the next CEO from within company ranks.
Even though Luiz Carlos Trabuco himself has been known for his policies of recruiting high-end managerial talent from outside the bank, in this case, he is unwilling to go that route. That narrows the list of potential individuals to fill the CEO slot down to just seven. The seven current executives directly below Trabuco all have, in theory at least, a genuine shot at being promoted. However, those in the know say that there are really only two candidates.
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Trabuco has long been a dogged proponent of meritocracy, that means that the only two real possibilities are the executives who have contributed the most to the bank’s operations. Alexandre Gluher is the chief risk management officer with the bank. He was responsible for guiding Bradesco through the financial crisis of 2008 and the acquisition of HSBC Brazil, with the bank eventually coming out the other side in better shape than ever. Many attribute his careful analyses as being a crucial component in the bank’s ability to weather the difficult markets of the 2010s without imploding. And at 58 years old, with nearly his entire career having been spent at Bradesco, the inveterate banker is one of the most senior candidates. Usually seniority would be a key factor in the promotion of the next CEO.
But Trabuco himself has stated that he will not weight seniority heavily. Trabuco is looking for pure results. And the outgoing CEO has been hugely bullish on technology. That means that the next CEO is very likely to be Mauricio Minas.
Minas has been the company’s chief information technology officer for about five years. Even though he has less time in with Bradesco than any other executive, many are pointing to him as the likely successor to Trabuco. In such a short time, Minas has accomplished a great deal for the bank. He was responsible for overseeing the integration of all of HSBC Brazil’s technology assets and personnel into the Bradesco fold, a process that has gone extremely smoothly to date. Minas was also responsible for the development of Next, an online banking platform that has proven to be so successful that it was recently spun off into its own company.
It is accomplishments like these, as well as Minas’ obvious knack for technology, that are likely to get Trabuco’s attention. Although no one knows for sure who Trabuco will appoint, there is little doubt that he will continue the program of adopting new technologies and continuing to gently push Bradesco’s customer base into its online and mobile products, which usually have considerably higher margins than the traditional, walk-in banking services.
It is likely that whoever ultimately ends up as CEO, they will continue on the path that Trabuco has set for the bank, growing organically and continually chipping away at competitors.
Find more information about Luiz Carlos Trabuco, just click here.