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Bradesco Has A New CEO But The Bank’s Mission Is The Same

Bradesco is making shareholders happy. The bank just issued $2.5 billion worth of stocks, and every shareholder is getting another share for every 10 shares they currently own. The shareholders will vote on that measure on March 12th. That measure should pass with ease. And the nomination of Octavio Lazari, the board’s pick to replace Luiz Carlos Trabuco, should also pass with flying colors. Lazari is not a newcomer to the Bradesco family. Octavio was an office boy when Amador Aguiar, the bank’s founder, hired him in 1978. Aguiar and Lázaro de Mello Brandão, the departing Chairman of the Board, hired Trabuco in 1969, so both men have tenure with the bank. Trabuco’s banking career took a turn when Lázaro Brandão put him in charge of Seguros, the bank’s insurance division in 2003.

Seguros is a moneymaker for Bradesco, so Lázaro Brandão thought Trabuco would keep profits up while expanding insurance services for bank customers, and that’s exactly what happened. For six years, Trabuco put a sizable chunk of profit on the bank’s bottom line, and Trabuco’s banking star hit the big time in the banking industry. The Board of Directors didn’t waste any time putting Trabuco in the CEOs chair when Lázaro de Mello Brandão moved to the Chairman’s position at the end of 2009. For the last eight years, Mr. Trabuco made headlines with his acquisitions and the expansion of online and mobile banking services. Under Trabuco’s leadership, Bradesco hit a new stride in the domestic and international banking.

Read more: Bradesco anuncia substituto de Trabuco

Trabuco sent Octavio Lazari to Seguros to sort out some insurance challenges, and Lazari didn’t disappoint Trabuco or the Board of Directors. In 2017, Lazari earnings broke Trabuco’s earnings record, so Mr. Lazari did what Trabuco did eight years earlier, and more. Lazari’s management performance at Seguros was enough to make him the top contender to replace Trabuco as CEO. But Lazari wasn’t the only candidate for the job. Six other vice-presidents were in the running. Trabuco and Brandão spent three months going over each candidate’s qualifications, but in the end, the Board of Directors thought Lazari had all the ingredients to be the new face of the bank. The shareholders will vote to make that choice official at the March shareholders meeting according to economia.estadao.com.br.

The good news is shareholders are getting two strong leaders. Trabuco and Lazari have a team of executive vice-presidents who know how to work together to generate income in an economy that is just recovering from a three-year recession according to g1.globo.com. No expects any negativity at the shareholders meeting. Bradesco is on track to have another record-breaking profit year, so the meeting will be positive, according to some shareholders. Shareholders will also vote to put four members of Trabuco’s executive team on the Board of Directors. Those men will hold their current positions and be board members at the same time.

Bradesco is facing challenges in 2018, but investors know Trabuco and Lazari have the experience and the team to overcome those issues without creating a lot of undue negative media attention.

Check more about Luiz Carlos Trabuco: http://www.valor.com.br/financas/5227979/sucessao-no-bradesco-deve-ocorrer-no-primeiro-bimestre-diz-trabuco