MasterCard Inc. said president and chief operating officer Ajay Banga will become chief executive on July 1, ending the 13-year reign of Robert Selander as he prepares for retirement.
Banga, 50, joined the company in August after working for 13 years at Citigroup Inc., where he had senior management roles in the U.S. and abroad. He's on the board of Kraft Foods Inc. and is joining MasterCard's board, effective immediately.
Selander will keep his spot on the board and serve as the vice chairman until retiring at the end of 2010. He shepherded the company through its initial public offering in 2006.
"We are fortunate to announce the transition to a leader with Ajay's expertise and experience," said Chairman Richard Haythornthwaite. "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." Banga was seen as the heir apparent to Selander when he was hired and was among a string of executives who left Citigroup last year for other jobs.
The processor of credit-card transactions hasn't been hurt by higher delinquencies and credit losses as it doesn't lend money. But the recession did ding results for a time as purchases slowed.
MasterCard shares closed Friday at $258.88 and were inactive premarket. The stock has climbed 50% the past year, modestly better than the broader market.