Global payment facilitator Mastercard Inc. recently announced that it has made some changes to its senior leadership team.
The company on Tuesday said that Ajay Banga, CEO of Mastercard for nearly a decade, will be elevated to the position of Executive Chairman of the board. He will be replacing Richard Haythornthwaite, who is due retirement soon. Richard Haythornthwaite has been serving as Chairman since May 2006.
Mastercard has for long been primarily providing the rails for debit and credit card payments, but with growing competition from payment companies and changing consumer habits have forced the company to develop technology to play a bigger role in B2B payments. Under Banga’s leadership, Mastercard turned the focus from card-based payments to a range of payment technologies.
According to the company, before Banga took over in 2010, card-based transactions accounted for about 80% of the company’s revenue which has since declined to just over 50%.
In an attempt to put more muscle behind the company’s effort to expand beyond its legacy cards business, Mastercard’s Board unanimously elected Michael Miebach, Chief Product Officer, to become Chief Executive Officer and a member of the Board of Directors. As part of the transition, he will become President of the company and will oversee the sales, marketing, products, services, and technology organizations.
Commenting on the management shuffle, Banga said, “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.”
He further added, “He has a proven track record of building products and running businesses globally. Over his career, Michael has held leadership positions in Europe, the Middle East, and Africa and in the U.S. across payments, data, banking services, and technology. During the course of Michael’s 10 years at Mastercard, he has been a key architect of our multi-rail strategy–including leading the acquisition of Vocalink and the pending transaction with Nets–to address a broader set of payment flows. He’s also a visionary who kickstarted much of the work behind our financial inclusion journey. I am excited to continue working closely with Michael and supporting Mastercard’s success when I become Executive Chairman.”
Miebach has played a crucial role in the company’s empire-building, leading the deals to acquire Vocalink, a payment-technology firm that allows payments to move between bank accounts, and Nets, a Danish payment-services provider. The Nets deal, which is in the process of closing, would be its biggest.
Miebach also led a push to enable Mastercard payments in emerging markets and was president of Mastercard’s Middle East and Africa operations between 2010 and 2015.
Talking about his appointment, Miebach said, “Mastercard has outstanding people, leading technology and tremendous potential. I am honored to have the opportunity to lead this great company with a team by my side that is second to none.”
He added, “I’ve dedicated the last decade of my career to payment innovation and will continue to evolve and execute Mastercard’s strategy. I would like to thank the Board of Directors for their confidence and trust, and I am excited to continue to partner with Ajay, our leadership team and all of our employees to build solutions that address the current and future needs of the ecosystem as well as pursue new growth opportunities for our company.”
Additional changes to the management include the retirement of Mastercard’s current Chairman, Richard Haythornthwaite.
Speaking on handling the helm of the company to Banga, Haythornthwaite said, “On behalf of the Board of Directors, I thank Ajay for his outstanding leadership and commitment to Mastercard. We will continue to benefit from his experience and expertise. Ajay has led the strategic and cultural transformation that has enabled the company to thrive. Michael shares the values Ajay fostered and has played a pivotal role in the company’s transformation. The Board has full confidence in Michael’s leadership, experience, and capabilities to build on the extraordinary platform developed under the leadership of Ajay and his predecessors.”
Current Board member, Merit Janow, Dean of the faculty of Columbia University’s School of International and Public Affairs (SIPA), was unanimously elected by the Board to become Lead Independent Director on January 1, 2021. She will continue to serve as Chair of the Nominating and Corporate Governance Committee when Haythornthwaite retires. Janow is a globally recognized expert in international trade and investment with extensive experience in government and regulatory bodies. Her career and public board service provide significant insights on technology innovation and digital matters, including cybersecurity. She joined the Board in 2013.
“I would like to thank Rick for his many contributions to Mastercard. He has been instrumental to our growth, leading us through important milestones, including our IPO. I’m grateful for the relationship we have built – one of trust, friendship, and guidance, coupled with clear lines of accountability,” added Banga. “Merit brings a wealth of expertise to the table and I look forward to continuing to work closely with her as Lead Independent Director.
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