Bradesco is at the center of Brazil’s finance industry and the past decade has been tough. Not only is the loan market increasingly competitive, but the government’s never-ending bureaucracy is at the heels of all of the big banks in the country. Despite all of this, the leadership of Luiz Trabuco has kept Bradesco’s profits at all-time high thanks to smart planning and diversifying.
Although Luiz’s run as a CEO is quite short-lived, the company has a strict age limit that will force him to soon retire. The company’s board of directors are forced to decide to change this age restriction to let him continue or to dive into the unknown by electing a new CEO of the company.
Dedication to the company
Luiz Trabuco’s success likely stems from that fact that he has been in the banking industry since he had graduated from high school. He started in low-level positions whilst in school and upgraded to executive positions decades later. He is one of the few CEO’s in the world to work for the same company their entire life, which is the type of dedication that a large financial firm really needs to get through tough times.
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Increasing The Market Share
Luiz had lived through many transformations of the company. It had gone from a relatively small bank with few branches to a financial giant that had overtaken 25 percent of the market.
By the 1980’s the Brazillian market had changed rapidly and old-school corporations were needing to change with it. The marketing department of Bradesco was rather stale and they tried their best to stay out of the spotlight of the media. Luiz Trabuco had changed the way they did PR and advertising completely. He had increased relations with local media groups and kept the maximum attention possible on Bradesco, which had been a contributing factor to its growth in the upcoming years.
Trabuco had especially been involved with its take over of the insurance industry. When he had control of Bradesco’s Insurance Group in 2003, he soon increased its market share to a solid 35 percent. It was such a dramatic increase that it had become one of the company’s primary sources of income.
There had also been rapid growth in the private pension sector since government pensions are unreliable. Pension plans are usually treated as an add-on to government plans instead of replacements.
Bradesco has also acquired a lot of assets in the past decade. Both Trabuco and the previous CEO have bought out other financial companies, including the Brazilian branch of HSBC. The current trend is large corporations are merging or acquiring smaller companies in order to dominate the markets, in which Bradesco must also do so to adapt.
A Company With Few Leaders
Bradesco has had a rather short history, in comparison to other large corporations, with a lifespan of just 64 years according to valor.com.br. Within their history, the vast majority of it was lead by the founder, Amador Aguiar, until his death in the early 1990s. The death was rather devastating to the company and a successor would be rather hard to choose.
The board of directors had to come up with last-minute plans to vote for a CEO and create rules for the first time. This is why there are still demands for reform since the board of directors is still rather immature for such a large company. If things like age limit terms are modified, this will allow for uninterrupted terms from good CEO’s so that changes will not have to be made at the last minute.
Find more about Luiz Carlos Trabuco: https://www.terra.com.br/economia/trabuco-assumira-presidencia-do-conselho-do-bradesco-banco-nomeara-novo-chefe-executivo-em-marco,9fb1d7fe927d7f26678a7543f82f02edw3u6oihm.html