Following The Resignation Of Lazaro Brandao, Luiz Carlos Trabuco Cappi Now Becomes The Longest-Serving Employee At Brazil’s Second Largest Private Lender, Bradesco

Brazilian bank, Bradesco SA is currently in the process of implementing a management shakeup. The move is meant to infuse fresh leadership and ideas into the bank as it looks to continue expanding going forward. The shakeup commenced on the 11th of October when former chairman Lazaro Brandao submitted his resignation to the bank. His stepping down brought to an end a storied banking career that has lasted seven-and-a-half decades and has seen him become arguably the most experienced banker in Brazil’s financial industry.

The chairmanship at Bradesco will now fall into the capable hands of Luiz Carlos Trabuco Cappi who has served as the bank’s president since 2009. Additionally, he has also been the vice chairman of the board since 2014.

The appointment of Luiz Carlos Trabuco Cappi as chairman is highly merited given his journey with Bradesco thus far. He joined the second largest private bank in the country back in 1969. He was then aged only 18 years but did not let the demands of his position intimate him. That and his quick learning abilities enabled him to earn promotion after promotion until the board appointed him as the president of the bank in 2009.

The name of the new president at Bradesco will not be announced for at least a few more months. The official announcement is set to come a month before the annual general meeting, slated for March. Until then, Luiz Carlos Trabuco Cappi is expected to keep the bank steady by serving as both the president and chairman. He will become only the second individual to concurrently hold the two positions, the first being Lazaro Brandao between 1990 and 2009.

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At the moment, the main candidates for the bank’s presidency work in different capacities for the Bradesco group. While the Bradesco board has not specified any traits that the candidates are supposed to exemplify to selected for the position, it is at least expected that they have an aptitude for leadership. Currently, the main candidates that are seen to excel in this area are the vice presidents, Octavio Lazaro, Alexandre Gluher, Mauricio Minas and Josue Pancini.

Owing to the shakeup currently going on at the bank, the incoming president will have a slightly different mandate to that previously had by Luiz Carlos Trabuco Cappi. First, the president will no longer be a member of the board of directors. This will ensure that the president instead focuses energies on the day-to-day operations of the bank. Additionally, the president could be working with a much larger board than the current eight-member board in place today.

Expansion has previously been seen as the primary strategy for increasing profitability. Consequently, Bradesco has acquired numerous banks within its 75-year history, with the largest coming in 2015. The figure involved in that acquisition was an estimated $5.2 billion. However, with tough economic conditions continuing to persist in Brazil, the incoming president could be forced to look to other strategies for guaranteeing profitability other than expansion. For example, he will be expected to oversee the scaling back of Bradesco’s 5,500 branches.

With most of Bradesco’s operations being in Brazil, the bank’s fortune is greatly tied to the state of the Brazilian economy. However, should he use prudent management strategies, the incoming manager could safely guide the bank through the recession as Luiz Carlos Trabuco Cappi previously did. In 2009, much of the world, including Brazil had an ailing financial system owing to the global financial crisis that kicked off in 2008. However, by cutting down on acquisitions and instead using organic growth, Cappi was able to keep Bradesco profitable and growing during the entire duration.

Find more about Luiz Carlos Trabuco Cappi: https://www.brasil247.com/pt/247/economia/321809/Trabuco-assumirá-presidência-do-conselho-do-Bradesco.htm