News of the resignation of Banco Bradesco’s ninety-one-year-old chairman Lázaro Brandão, did not come as a surprise to industry observers. The replacement process had commenced two years ago but was delayed following the death of an insurance executive who had been fronted for the seat of CEO.
Although the organization has an intricate system through which executives are promoted, the new CEO will only take office after a general meeting of the shareholders scheduled for March 2018.
Retired Chairman Lazaro Brandao said in his valedictory note that the new CEO would have his work well cut out, especially in creating a strategy for the 5,000 bank branches. After several decades of progressive expansion, the bank embarked on a scaling strategy earlier this year, in its efforts to bolster profitability at a time when the country is reeling from a harsh recession.
The economic situation in the country may bolster the next CEO’s efforts to boost the bank’s profitability. In the recent past, the bank has undertaken measures to align itself with its digital customers with its newest digital platform called NEXT. Executives said that the platform aimed at “offering more personalized experiences to customers.”
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In the wake of management changes, such implementations and visionary leadership will be expected from the CEO. Also, forming partnerships and breaking new grounds for the organization will also form part of the duties of the CEO and the board.
Mauricio Minas, Bradesco’s vice president of technology who is also a likely pick for the vacant CEO seat said that Next was slated to offer lower lending rates than those charged at its brick-and-mortar branches. He, however, noted that the lower rates do not render them uncompetitive
“Those who have very low-interest rates do not sustain themselves over time,” said Minas, “Next will not be irrational with fees.”
Both the seats of Chairman to the board and that of CEO which are currently being held by the Luiz Trabuco will attract key interest from shareholders and industry players. In his valediction note, Mr. Brandao emphasized the need to maintained the “culture” and “values” that the organization has created over the years.
The new CEO will be picked in a general meeting to be held in the 1st quarter of 2018. In his new capacity as chairman of Bank Bradesco, CEO Luiz Trabuco will draw a lot from his experience in the banking industry over the years.
Having served in various capacities since joining Banco Bradesco in April 1969, Trabuco is seen as a natural heir to the seat that has been held for 75 years by Brandao. His connections in other subsidiaries associated with the company as well as in the political spheres will also help to bring on board an important network of individuals.
Trabuco received approving commendation from the outgoing chairman who termed him as a “natural choice” for the position chairman. “there was no need for research,” Said the chairman in an interview.
Shareholders also expect that the new brand of executives will be in a position to place the bank strategically for competition especially at a time when Brazil is preparing for a general election in 2018.
One of the strengths of the culture that the organization has created is that it is easy to pick successors of various posts that fall vacant from time to time. The organization has some of the longest serving managers in its board who have grown through the ranks of the bank according to jusbrasil.com.br. This gives them an internal knowledge of the organization’s operations, making it easy to choose various individuals for leadership positions. It also remains to be seen how the bank reacts to the exit of one of its longest-serving employees.
Learn more about Luiz Carlos Trabuco Cappi: http://www.istoedinheiro.com.br/noticias/negocios/20151218/luiz-carlos-trabuco-cappi-empreendedor-ano-nas-financas-2015/327856