Banco do Brasil SA's management reshuffle earlier in the week could include a possible successor for CEO Paulo Caffarelli as the state-owned bank looks to keep its senior management engaged ahead of the country's October elections, according to a Valor Econômico report.
Citing an unidentified source, the newspaper pointed to Gueitiro Matsuo Genso as a potential lead candidate to become the bank's next CEO. As part of the management changes, Genso will become Banco do Brasil's vice chairman of retail distribution and personnel management, moving from his current role as head of the bank's pension fund known as PREVI.
The report comes as the end of President Michel Temer's term nears, which could effectively mean the end of CEO Paulo Caffarelli and his team at the helm. As a state-controlled entity, Banco do Brasil's senior executives are appointed by the Brazilian president's administration. Caffarelli himself was appointed to the CEO role in 2016 by Temer's then-finance minister, Henrique Meirelles.
Meanwhile, Valor cited other sources as saying that the management reshuffle was meant to stave off an "end-of-term climate" and motivate executives ahead of the elections.
The reshuffle, announced July 3 and still subject to board approval, also shifted Walter Malieni Júnior to vice president of wholesale business from the vice chairman of retail distribution and personnel management that Genso is taking on. It also named Antônio Maurício Maurano, currently vice president of wholesale business, as CEO of its insurance arm, BB Seguridade Participações SA, and José Maurício Pereira Coelho, currently the CEO of BB Seguridade, as the head of PREVI.