With the departure of Luiz Carlos Trabuco Cappi from the position of CEO, Bradesco, one of the largest banks in Brazil, has been put into a state of uncertainty regarding its future leadership.
But many have faith in the ability of Trabuco Cappi, who will be taking over as chairman of the board, to select his successor with skill.
Early in the process, there were rumors swirling that Trabuco Cappi may have been considering going outside of the bank to recruit the next CEO. These had some merit, as Trabuco Cappi himself was responsible for the creation of one of the first and only executive management schools in Brazil, an effort that was explicitly aimed at relieving the shortage of quality executives within the country. Trabuco Cappi has also long been known as a staunch advocate of meritocratic hiring practices, trading softer performance metrics, like seniority, in for harder, more scientific measurements, like ability to attract customers or development of technological innovation.
But Trabuco Cappi put the rumors of outside recruitment to rest shortly after they first surfaced. He explicitly stated that he would not depart from corporate tradition and would be recruiting the next CEO from within the ranks of the firm.
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This was good news to many within the company, as the appointment will now open up multiple management positions all the way down the chain. Whoever is appointed CEO will create a vacant position. And whoever fills that position will, in turn, create yet another position, all the way down to the lowest management level.
In fact, this production of natural churn throughout the corporate management hierarchy was one of the reasons given by Lazaro Brandao for finally stepping down from his position, creating the opening for Trabuco Cappi and, therefore, creating a vacancy in the CEO slot. Brandao said that he strongly believes in the mandatory retirement age of 65, and, even though he continued on until the age of 92, thinks that it may have been more appropriate for him to have stepped down at an earlier date.
However, Brandao’s situation was different. He was no ordinary chairman of the board. Brandao had overseen the period of the bank’s greatest growth. Between 1990 and 2009, the bank had increased in value by a factor of more than 300 times, an incredible rate of growth that may be one of the most rapid periods of growth of any business in the history of Brazil.
Due to this success, many stakeholders have come to see Brandao as a sort of spiritual leader of the bank, making them extremely nervous when contemplating what the future will look like without him. However, Brandao has said that he and Trabuco Cappi see eye-to-eye on so many different things that it is almost uncanny.
Both executives see technology as one of the key factors in taking the bank forward. In fact, both men have identified the 13 million customers of Bradesco that still do not have regular or reliable access to the internet as being a key problem that the bank will need to combat. Both Brandao and Trabuco Cappi have gone so far as to suggest programs that will involve furnishing customers with the technology necessary to connect to the internet, thus allowing them to access online banking facilities, rather than the manpower-intensive in-person banking facilities that they currently use.
Brandao has stated that, under Trabuco Cappi, Bradesco will continue down the same lucrative path it has been on for the last 30 years. As evidence of this, he cites the fact that much of the reason that Bradesco has arrived at where it is today is the direct result of Trabuco Cappi’s actions.
Find more about Luiz Carlos Trabuco Cappi: https://g1.globo.com/economia/negocios/noticia/lazaro-brandao-renuncia-ao-conselho-de-administracao-do-bradesco.ghtml