- Push-out Score determined
- After almost 11 years in the position
- Praise and thanks for Banga
- Michael Miebach taking over
- Banga will remain as Executive Chairman at Mastercard
- Banga made a lengthy statement and said 364 words
(exechange) — Purchase, New York, February 25, 2020 — Ajay Banga, chief executive of Mastercard, leaves his post. His departure is made public at an early stage. As announced by Mastercard Inc. in a news release and in a regulatory filing published on Tuesday, February 25, 2020, Ajay Banga leaves his post as chief executive officer at the financial services company after almost 11 years in the role, effective December 31, 2020.
Long goodbye
It is a long goodbye. The announcement of Ajay Banga’s move comes up to 10 months prior to his planned departure from the post of CEO.
In general, a top executive who announces the departure very early may be considered a lame duck.
Ajay Banga’s duties as CEO will be taken over by Michael Miebach, currently Chief Product Officer of Mastercard Inc.
“The company moves into this next phase of growth”
A reason for Ajay Banga’s departure from the CEO post was not explicitly provided. 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.”
Banga will remain as Executive Chairman at Mastercard
“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 said.
Share price increase since July 2010
The announcement follows an increase in Mastercard Inc.’s share price of 1446% since July 2010.
In the position of CEO since 2010
Ajay Banga became CEO of the Company in 2010.
Banga is president and chief executive officer of Mastercard and a member of its board of directors.
Banga is a co-founder of The Cyber Readiness Institute, first vice chairman of the International Chamber of Commerce and a trustee of the United States Council for International Business.
Banga is a founding trustee of the U.S.-India Strategic Partnership Forum, a member of the U.S.-India CEO Forum and is Chairman Emeritus of the American India Foundation.
Banga is also a co-chair of the Partnership for New York City.
He served as a member of President Obama’s Commission on Enhancing National Cybersecurity.
He is a past member of the U.S. President’s Advisory Committee for Trade Policy and Negotiations.
He was awarded the Padma Shri Award by the President of India in 2016 and with the Ellis Island Medal of Honor in 2019.
He is a fellow of the Foreign Policy Association and was awarded the Foreign Policy Association Medal in 2012.
Banga is a member of the board of overseers of the Weill Cornell Medical College and the board of governors of the American Red Cross.
In addition, Banga serves as a Director of Dow Inc. and is a member of its compensation and governance committees.
Prior to Mastercard, Banga served as chief executive officer of Citigroup Asia Pacific.
During his career at Citigroup, he held a variety of senior management roles in the United States, Asia Pacific, Europe, Middle East and Africa.
He also oversaw the company’s efforts in microfinance.
Banga began his career at Nestlé, India, where for 13 years he worked on assignments spanning sales, marketing and general management.
He also spent two years with PepsiCo, where he was instrumental in launching its fast food franchises in India as the economy liberalized.
He is a graduate of Delhi University and the Indian Institute of Management, Ahmedabad.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Mastercard and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 9.2020 ($).