2018 will mark the 75th year since Brazilian bank, Bradesco was founded by Amador Aguiar. The bank’s long and successful existence has unfortunately been marked by a number of shortcomings. The latest shortcoming Bradesco has faced is the resignation of its longtime chairman, Lazaro Brandao. Mr. Brandao had been serving in this capacity for close to three decades and had been at Bradesco throughout its entire existence. He was by far the most experienced banker at Bradesco and in the Brazilian banking industry. However, true to the Bradesco’s resilient nature, it has turned this recent shortcoming into an opportunity for future prosperity by appointing Luiz Carlos Trabuco Cappi as Mr. Brandao replacement. Mr. Brandao has for the last few years been serving as the bank’s president and has in that time shown a great affinity for innovation and strategic management. Even Mr. Brandao’s unfortunate departure, hopefully, the unique skill set possessed by Cappi will revitalize the board going forward.
Lazaro Brandao’s resignation had long been anticipated at Bradesco. In fact, some industry observers were startled that he waited till he was past the age of 90 to announce that he would be leaving the highly demanding post of chairman. Consequently, the bank had had some time to prepare for the day he would eventually leave. In 2014, bank president Luiz Carlos Trabuco Cappi was nominated to become the board vice chair. This appointment allowed him to directly learn from Mr. Brandao about what it takes to run the board of such a large bank. The transition to Cappi’s tenure will, therefore, likely have no problems and will greatly inspire the confidence of shareholders, staff, and customers.
Among Luiz Carlos Trabuco Cappi’s earliest responsibilities as the chairman of Bradesco’s board is that he will have to oversee the process of appointing a new president. His promotion to Mr. Brandao’s previous position means that he has also vacated a position. Fortunately, Cappi will have Bradesco’s stringent bylaws and highly defined culture to guide the process of selecting a replacement. He has already indicated that he will stick to the bank’s traditions by announcing late last year that Bradesco’s next president will be appointed from within the institution. However, the bank’s fifth president will not be announced until March, consequently meaning that Cappi will have to continue serving in the capacity for a few more weeks.
There is also a high likelihood that the leadership changes currently being experienced at Bradesco could also reach its board. While Bradesco has grown tremendously over the last few decades, this, unfortunately, has not been accompanied by a growth in the number of board members. Currently, there are eight seats on the bank’s board and are currently occupied by the family of Amador Aguiar and banking professionals. The board’s current size is quite small for a bank’s of Bradesco’s stature, and there is a serious drive to expand its members. However, any increases in the size of the board will almost certainly be accompanied by removal of the president’s seat on the board. This change will equally ensure that the president is not held back by non-executive responsibilities and thus solely concentrate on growing the bank.
While it may be hard to believe right now, Luiz Carlos Trabuco Cappi started out at the very bottom with Bradesco. He was appointed the clerk of his local town’s branch while still being a teenager. Over the next four decades, he combined the knowledge learned from his superiors with his unwavering dedication that led him to earn a stream of promotions that led to him being president – and now, chairman of the board.