Mastercard announced that Ajay Banga, President and Chief Executive Officer, will transition to the role of Executive Chairman of the Board of Directors of Mastercard Incorporated on January 1, 2021. Mastercard’s Board unanimously elected Michael Miebach, Chief Product Officer, to become Chief Executive Officer.
Miebach will join under the legacy of a CEO who brought Mastercard’s revenue from $5.5 billion in 2010 to $16.9 billion and raised its shares by 1,600%.
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Part of Banga’s success is down to the wave of e-commerce growth in the last decade, which the card issuer was able to ride of and make a healthy margin from in the process.
“As the company moves into this next phase of growth, we have a deep leadership bench – with Michael at the helm – to take us to the next level,” said Banga. The Indian-born top executive also mentioned the company has built a growth-oriented mindset and operated with a sense of urgency, delivering a 13 percent compound annual revenue growth from 2009 through 2019.
Mastercard’s announcement came a day after the credit card company warned the coronavirus outbreak could hit its 2020 revenue. The stock traded 1.6% lower in the premarket.
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“If the impact is limited to the first quarter only, we expect that our 2020 annual year-over-year net revenue growth rate would be at the low end of the low-teens range,” Mastercard said.