Fostering a Dynamic Culture

In this highly competitive marketplace, the quality of our workforce is what sets us apart. In 2005, we strengthened our ranks through a range of programs and initiatives aimed at attracting talent, empowering leadership and fostering organizational vitality. These efforts continued to win public recognition for MasterCard, whether by Computerworld, which again named us one of the Best Places to Work in IT; Essence Magazine, which cited us as one of the best places to work for African-American women; Hispanic Magazine, which named us one of the best companies at providing opportunities for Hispanics; or Diversity Inc., which counted us among the top 50 companies for diversity and top 10 companies for executive women. The result, I believe, is a workforce to be proud of, and one dedicated to achieving success by upholding our leadership principles and high ethical standards.

As part of our transition to a publicly traded company, we proudly established The MasterCard Foundation in 2006. This sizable charitable foundation is run by an independent board of directors and will focus on providing microfinance programs, as well as supporting youth education causes, around the world.

Much of the credit for the formation of this significant charitable endeavor goes to our financial institution shareholders and outgoing board of directors. I am grateful for the leadership and guidance of our former board members. In particular, I want to thank our former chairman, Baldomero Falcones Jaquotot, who led us through this historic transition to a publicly held company. Likewise, we look forward to working with our incoming board, which will preside over the most exciting chapter yet in the MasterCard story.

The truth is, even with our many accomplishments, we believe the best is yet to come — for our industry in general, and for the new MasterCard Worldwide in particular. For despite the explosion in electronic commerce, we have only scratched the surface of the payments opportunity. No company is better positioned than we are to make the most of it — and to deliver shareholder value — as we demonstrate our role at the heart of commerce.

Robert W. Selander
President and Chief Executive Officer
May 2006