Mastercard CEO Ajay Banga to step down in 2021; chief product officer Michael Miebach to take over

Mastercard said on Tuesday CEO Ajay Banga will step down at the start of the next year and be replaced by Chief Product Officer Michael Miebach. Banga, who took charge of the company just after the 2008-09 financial crisis, has seen the payment processor’s revenue triple during his tenure as online shopping gained prominence around the world.

Mastercard names product chief Michael Miebach as CEO, Ajay Banga moves to executive chairman pic.twitter.com/uD5lj3SpBf

— CNBC-TV18 (@CNBCTV18Live) February 25, 2020

India-born Banga will take on the role of executive chairman, while Miebach will become the company’s president on 1 March. Chairman Richard Haythornthwaite will retire after more than a decade when Banga assumes his new role, the company said in a statement. Before joining Mastercard as president of Middle East and Africa in 2010, Miebach served as managing director at Barclays Bank and general manager at Citibank. [caption id=“attachment_528757” align=“alignleft” width=“380”]  Ajay Banga, CEO, Mastercard. File image. Reuters[/caption] In connection with Miebach’s appointment as president, Mastercard has entered into a new compensation agreement that adds $750,000 to his annual base salary, the payment processor said in a filing. Miebach will also receive an equity grant with a target value of $6.25 million. His compensation as chief executive officer will be determined later, the company added. Mastercard on Monday warned its first-quarter net revenue would take a hit if coronavirus outbreak persists through the quarter. Shares of the company were down nearly 2 percent at $319 in the premarket trade.