There’s change happening at the top at card issuer Mastercard. The current Chairman Richard Haythornthwaite is taking a retirement and he will be replaced as Chairman by the current CEO, India-born Ajay Banga. Banga has been the CEO of Mastercard for a full decade, taking over in 2008-09. There is going to be smooth transition with an internal candidate, Michael Miebach, Chief Product Officer being elevated to the post of CEO and the formal taking over of Banga as Executive Chairman will be effective March 1 2020.
People who have been observing Mastercard closely say Ajay Banga took over as CEO when there was a virtual crisis and it is to his credit that not only did the company come out of the crisis, it has gone on to post triple the turnover that was there at the time of his taking over.
Ajay Banga had been at Citibank as a general manager and at Barclays Bank as a director before joining Mastercard.
The company has put out a statement on these changes and has added some details on the compensation being proposed for Miebach, the new CEO. While not finalising the base salary to be paid to the CEO, there is a mention of a $750,000 bonus in the compensation agreement between him and Mastercard. In addition, there will also be an equity grant valued at $6.25 million. The other elements of the compensation payable to the CEO will be decided later, the company says.
Meanwhile, the card payment processing company has issued an earnings warning following the coronavirus crisis that is spreading to more countries. Stock markets are reacting aggressively to this serious threat to economic activity and the shares of Mastercard too fell 2%.