PURCHASE, N.Y. (
shares ticked marginally higher Monday after the company named President and COO Ajay Banga to succeed CEO Robert Selander.
Banga, 50, a former
executive, will begin his term as CEO on July 1. He is also joining the board, effectively immediately, the company said. MasterCard shares were up 64 cents to $259.52 in recent trades.
Selander, 59, has been at MasterCard's CEO since 1997. He will continue to serve as the electronic payments processor's executive vice chairman and remain on the board until he retires on Dec. 31.
was named as president and COO of MasterCard last June and stared the job at the end of August. At the time, it was widely speculated that he was the heir apparent to Selander, but the timeframe was still unknown. A signal that a changing of the guard was in the offing surfaced in August when Selander entered into a new
MasterCard shares are up just 1.1% year-to-date, while rival
stock has gained 5.8% so far in 2010.
Under Selander's leadership, MasterCard evolved from a 40-year-old membership association to a New York Stock Exchange-listed public company, holding its IPO in May 2006, according to a press release.
"Bob is a true visionary - responsible for the transformation of MasterCard into one of the world's leading companies, and instrumental in shaping today's payments industry," MasterCard Chairman Richard Haythornthwaite said in a statement. "We are extremely thankful for his 13 years of leadership as CEO, and look forward to his continued guidance as executive vice chairman.
"We are fortunate to announce the transition to a leader with Ajay's expertise and experience. His industry knowledge, as well as his deep background in financial services encompassing many geographies, makes him the ideal CEO to successfully drive MasterCard's future growth," Haythornthwaite added.
Prior to joining MasterCard, Banga spent 13 years at Citigroup from 1996, and held a variety of senior management roles in the United States and Europe, Middle East, Africa regions before becoming chairman and chief executive officer of Citigroup's international global consumer group in 2005, according to the release.
"Since joining MasterCard in late August 2009, Ajay has demonstrated extraordinary leadership and insight, and I know he is the ideal candidate to lead MasterCard moving forward," Selander said in a statement. "As a company doing business in 210 countries and territories, MasterCard and its customers will benefit from Ajay's unique global perspective."
--Written by Laurie Kulikowski in New York.