Credit card and electronic payments giant Mastercard (MA) - Get Report on Tuesday named current Chief Product Officer Michael Miebach as its next CEO, replacing current CEO Ajay Banga, who will continue on as the company’s executive chairman effective next January.
In a statement, the company announced that Banga will become executive chairman of the board of directors as of Jan. 1, 2021. Miebach will become CEO and also join the board as of Jan. 1, though he will take on the role of president as of March 1, 2020.
“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 senior management changes follow the company’s warning on Monday that the effects of the coronavirus will result in slower revenue growth for the first quarter than the company guided for on its Jan. 29 earnings call.
Mastercard on Monday said that if current trends continue through the end of the quarter, “year-over-year net revenue growth in the first quarter will be approximately 2-3 percentage points lower than discussed on our January 29, 2020 earnings call.”
The company added that in those circumstances it would “expect year-over-year net revenue growth of 9%-10% in the first quarter.”
Mastercard beat Wall Street's fourth-quarter earnings forecasts, more than doubling its profit from a year earlier when it reported results at the end of January.
The Purchase, N.Y., company earned $2.1 billion, or $2.07 a share, in the quarter, compared with $900 million, or 87 cents, in the year-earlier quarter. Adjusted earnings came to $1.96 a share, beating the $1.87 a share consensus forecast in a survey by FactSet.
Revenue for the quarter totaled $4.4 billion, up 16% from a year earlier and matching Wall Street forecasts.
Shares of Mastercard were down 1.44% at $320.16 in morning trading on Tuesday.