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Visa announces reorganization, president steps down
July 27, 2009
Visa Inc. announced yesterday that it is reorganizing its executive management team, which includes the departure of Visa president John C. (Hans) Morris.
In a news release, Visa chairman and chief executive Joseph W. Saunders said the reorganization aims to heighten organizational effectiveness and increase the pace of Visa's global alignment:
 | We've come a long way since October of 2007, when we merged five independent Visa operating regions, Visa International and its global payment processing subsidiary, Inovant, into one company called Visa Inc. and very successfully took the company public. Since the IPO (initial public offering), we've expanded our core debit and credit business, reduced operating costs by hundreds of millions of dollars and heightened our focus on product innovation. We have met or exceeded most of the financial goals we established at the IPO, and continue to meet or exceed all our current financial guidance. As a growing and constantly evolving company, we will continually assess our management team structure and refine it as necessary. |  |
As part of the restructuring, Visa's global sales, client-services, marketing, product-development and innovation functions will immediately be consolidated and led by John M. Partridge, Visa's chief operating officer.
Morris is expected to remain with the company until the end of the year, until the restructuring is complete.
The global economic crisis is hitting the credit industry harder than others. But Visa and MasterCard have both maintained profitability, reports The Street.
This morning, The Street said that despite declines in credit-card purchases from large card issuers such as JPMorgan Chase, Bank of America and Citigroup, the use of debit continues to increase — and is offsetting losses on the credit side of the house.
Analysts expect double-digit declines in profit from both Visa and MasterCard, relative to the same period last year. For the third quarter, Visa on Wednesday is expected to report earnings per share of 64 cents, while MasterCard on Thursday is expected to report EPS of $2.42.
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