Banco Bradesco SA is glaring at a future without Lazaro de Mello Brandao. The retired executive was the chairman of the board of directors of the Osasco-based bank. He had held the position for 25 years, starting in 1991. The 91-year-old Brandao knew Bradesco like the back of his hand having commenced his career at the bank in 1943—the same year that Bradesco was established. Like other professionals starting out their careers, Brandao began his career as an entry-level employee. Brandao then moved up the ranks, being appointed a director in 1963. In 1977, the office of the bank’s vice president fell vacant, and the appointing authority settled on Brandao to be Amado Aguiar’s deputy. Aguiar resigned four years later, and Brandao was appointed as his successor.
Aguiar, Bradesco’s founder, stepped down as president but remained the chair of the board. Aguiar and Brandao worked alongside one another until 1991 when Aguiar passed on. Being next to Aguiar in Bradesco’s leadership hierarchy, Brandao was elected to take over from Aguiar. Brandao was officially the second chairman and the second president of Bradesco. He held both positions until 1999 when he relinquished the presidency to Marcio Cypriano.
Brandao presided over the board of directors while Cypriano focused on the day-to-day running of Bradesco. Under Cypriano’s tenure, Bradesco expanded tremendously acquiring ten smaller banks. Brandao and Cypriano cemented Bradesco’s place in the Brazilian banking sector as the largest private bank. Because of age an age limit policy applicable to the office of the president, Cypriano resigned in 2009. Meanwhile, Brandao continued serving as Bradesco’s chairman as the bank does not impose an age limit policy on this office. Bradesco appointed Luiz Carlos Trabuco Cappi to take over from Cypriano.
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Brandao and Trabuco’s tenure at the helm of Bradesco saw the bank continue its expansion spree. Just a year after taking office, Bradesco acquired Ibi Brazilian and Ibi Mexican. However, the bank’s acquisition of HSBC Brazil is perhaps the most significant inorganic growth strategy overseen by the duo. Bradesco acquired HSBC Holdings Plc.’s retail unit for a whopping $5.2 billion in 2015. The purchase became known as the largest transaction in Brazil in 2015. Isto É Dinheiro Magazine awarded Trabuco the title “Entrepreneur of the Year” in the finance category. In fact, the purchase pushed Bradesco closer to Itaú Unibanco, the largest private bank in Brazil. Itaú Unibanco came to life in 2008 following a merger between Itaú and Unibanco.
Following Brandao’s resignation, Bradesco appointed Trabuco to chair the bank’s board of directors. Trabuco, 66, has been at Bradesco for 48 years, and just like Brandao, he started out as a clerk. He is one of the few longest-serving employees who comprehend Bradesco’s culture to the core. However, Trabuco is approaching 67, and he will need to step down to allow a new CEO to assume office. Trabuco will resign in March.
Trabuco’s resignation is of immense interest to Bradesco and its stakeholders. They are interested to find out who will take the mantle from Trabuco. As the CEO, Trabuco is privy to closely guarded information concerning the appointment of a new CEO. Trabuco hinted to Bradesco’s stakeholders that the bank’s appointing authority would respect Brandao’s wishes. At the helm of Bradesco, Brandao directed that leadership positions at the bank should be awarded to deserving Bradesco’s staff. Although many Bradesco’s staff deserve to succeed Trabuco, only seven of them are in the forefront in the succession talk, according to insiders. They include
• Mauricio Machado de Minas
• Alexandre da Silva Gluher
• Domingos Figueiredo Abreu
• Josué Augusto Pancini
• Marcelo de Araujo Noronha
• Octavio de Lazari
• André Rodrigues Cano
Learn more about Luiz Carlos Trabuco Cappi: http://bradesco.infoinvest.com.br/relatorios-cvm/ptb/000906/20001231/5/31.12.200.pdf