There comes a time when a company has to hold tightly to its CEO and is where Banco Bradesco SA (ADR) (NYSE:BBD) is. The company wants to delay the retirement of its CEO Luiz Carlos Trabuco Cappi by at least two years.
Mr. Cappi will attain the retirement age of 65 years next month. But Banco Bradesco SA (ADR) (NYSE:BBD) wants to keep him around for some unfinished business that the company believes only he can handle properly.
As such, Banco Bradesco intends to amend the rule on CEO age limit to allow it to keep Mr. Cappi around for two more years. The company has proposed to raise the CEO retirement age to 67 from 65.
A vote on the amendment
The amendment of the CEO age requires the input of shareholders. Therefore, at the next shareholder meeting set for October 7, proposal to edit the CEO age will be among the issues to vote on. There doesn’t seem to be much pressure on the issue because only a simple majority vote is required to make the changes.
It is not clear whether any of Banco Bradesco’s major shareholders are opposed to the move, but the reason the company is doing it seems to be a noble one. The company says that because it is in the process of swallowing the Brazilian operations of HSBC Holdings PLC, it is important to have continuity in the CEO job during the integration process.
$5.2 billion acquisition
Banco Bradesco SA (ADR) (NYSE:BBD) parted with $5.2 billion to grab the Brazilian unit of HSBC Holdings PLC. As such, the company won’t wish to bungle the integration of such a huge asset of a shakeup in the CEO office.
Banco Bradesco SA (ADR) (NYSE:BBD) said in a filing the edit it has proposed on the CEO age limit will allow it to take advantage of the tremendous professional experience of Mr. Cappi. It is worth noting that Mr. Cappi has been the CEO of Banco Bradesco since 2009 and the board and shareholders appear satisfied with his performance that they won’t hurry his exit when there is so much important work he can help with.