Luiz Carlos Trabuco, the reigning CEO of Bradesco is finally moving on. But he’s not leaving the bank, he is taking over as Chairman of the Board of the bank. Trabuco is the man who put the bank on the international map over the last nine years.
Before he was CEO, Trabuco was the president of Seguros, the insurance division of the bank. While Luiz was in that position he gave members of the board and investors a good reason to like him. Seguros became a major profit center even though Brazil was drowning in recessionary issues. Businesses were closing and people were losing their jobs, but thanks to Trabuco, and other bank executives, Bradesco is a moneymaker.
Being president of the bank’s insurance division is a difficult job, and that’s why the board got the notion to replace Trabuco with a man that could take over without creating any unnecessary conflicts. The board decided to give Octavio Lazari the job, and he didn’t disappoint them. Seguros is responsible for producing at least 30 percent of the bank’s yearly profit since he got the job. Just like Trabuco, who has forty-nine years with the bank, Lazari is a dedicated Bradesco employee with forty years of service. Both men remember working with founder Amador Aguiar, and they both admire what retiring Chairman Lázaro de Mello Brandão did when Aguiar passed in 1991. Lázaro de Mello Brandão is only the second chairman in the bank’s long history and he was a good one. But Trabuco is now stepping up to be the third chairman of the second largest private bank in Brazil. And Octavio Lazari is taking his spot as CEO.
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Seven Bradesco employees were candidates for the CEO position. All the executives were the right age which means they all were in their fifties. The age cap on a Bradesco CEO is now 65. It was 67 when Trabuco took over nine years and he is 67 now. Fifty-four-year-old Lazari has time to put his creative stamp on the bank, while Trabuco backs him on the board. Both men display similar characteristics even though Trabuco did not study to be a banker when he was a philosophy major at the University of Sao Paulo. Thanks to Aguiar and Brandão direction, Trabuco was an excellent 1969 trainee, and he went on to be an effective vice-president. In 2003, he got the nod to be the president of Seguros.
Lazari has big shoes to fill, but the other executives on the team will help him through the rough patches once the shareholders confirm his nomination on March 12th at the annual shareholders meeting. Lazari made it clear that the bank isn’t in acquisition mode, and the bank will continue to develop new IT programs that make banking easier for mobile and Internet users. He also wants to address bank branch issues like underperforming branches, and branches that are too close together because of the HSBC acquisition in 2015.
Bradesco’s stock is a Wall Street favorite. Trabuco and Lazari want to make sure the bank’s stock continues to give investors the returns they want. Wall Street already knows Brazilian banks know how to make money, but when there is a change at the top, some investors get nervous and sell. But the long relationship between Lazari and Trabuco, plus the overwhelming support of the executives and all bank employees make this executive transition a sensible one to accept for investors. Trabuco and Lazari are moving ahead. Bradesco’s profits should hit or exceed 2018 projections, according to retiring 91-year-old Chairman Lázaro de Mello Brandão. But he is going to stick around part of the time to help make that happen.
For more information about Luiz Carlos Trabuco, just click here.