STXNEWS LATAM-Citigroup calls Itaú's succession strategy 'positive'

Fri Feb 22, 2013 8:56am EST

Plans by Itaú Unibanco Holding SA to amend the company's bylaws and prepare Brazil's largest private-sector bank for a management succession process for the next four years is positive, analysts at Citigroup GB&M said in a client note on Friday. Chief Executive Officer Roberto Egydio Setubal agreed to step down as chief executive of the commercial bank, Itaú Unibanco SA, next year when he reaches the mandatory retirement age of 60.

Under a proposal that will be put for vote on April 19, Setubal will then assume the presidency of the group's holding company for two years. "First, four more years gives Setubal plenty of time to see through the completion of Itaú Unibanco's efficiency improvement program ... Second, four years should be ample time to identify and groom a competent successor," analysts led by Daniel Abut wrote.

Abut and his team identified senior vice presidents Marco Bonomi and Cassio Schettini as members of a short list of candidates to succeed Setubal as CEO of the retail bank.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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