Visa hires JPMorgan’s Charles Scharf as CEO

October 27, 2012

Visa hires JPMorgan's Charles Scharf as CEO

Visa Inc., said Charles Scharf, a former head of JPMorgan Chase & Co. division of consumer financial services, shall Joseph Saunders Director with effect from 1 November succeed.

Visa

was looking for a successor to Saunders, 66, who has led the company since 2007 and was expected to retire.

Scharf, 47, was a member of the board of directors of Visa from 2007 to January 2011.

Known as Charlie, Scharf moved to retail banking JPMorgan in its private equity arm in 2011, after the lender some mixed retail banking executives in an effort to increase profits.

Scharf

worked closely with Jamie Dimon, Chairman and CEO of JPMorgan, when both men were at Citigroup Inc. in 1990. Scharf followed Dimon Chicago-based Bank One, which JPMorgan acquired in 2004.

Scharf is currently Managing Director of One Equity Partners, of which $ 10 billion of investments and commitments for JPMorgan Chase manages.

“We believe that the experience Scharf management on a large scale is a good … and our first checks were positive about his style of leadership,” Jefferies analyst Jason Kupferberg wrote in a note to clients.

Scharf

experience with JPMorgan will also help Visa. The bank card issuer Visa Card largest and accounts for about 10 percent of its profits, Kupferberg said.

Scharf came at a time as Visa, MasterCard Inc. competitor cards and issuing banks are trying to trace their way through a storm of new digital technologies and companies that have come to the industry Payments from outside the bank, such as eBay and PayPal Price Place Inc.

Analysts do not expect

Scharf major changes in the payment network generation.

“I think Visa is doing well. I think everything will be loaded to the march in the same direction,” Wedbush Securities analyst Gil Luria said.

The San Francisco-based company has already announced its annual forecast twice this year as people move on the map based payments in the world.

Visa

is scheduled for the fourth quarter report on 31 October.

Saunders led

current CEO of Visa IPO in 2008 and continues as Executive Chairman until 31 March, after Visa appoints new non-executive chairman to be independent.

Visa

said Scharf $ 950,000 per year in base salary and a bonus of up to receive up to 500 percent.

Scharf

will also be a “make-whole” get allocation options and restricted stock of $ 19 million, the company said in a filing with the U.S. Securities Commission scholarship. The price is based on a portion of the remuneration is leaving JPMorgan Scharf.

Saunders received $ 11.8 million in total compensation in 2011, according to legal documents.

Shares

network of credit and debit cards increased by less than 1 percent to $ 137.48 on the New York Stock Exchange on Wednesday.

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