8-K/ALeadership Changes

AMERICAN EXPRESS CO 8-K/A Report, Executive Changes (Nov 6, 2007)

Filed November 6, 2007For Securities:AXP

Summary

This filing is an amendment (8-K/A) to a previous report by American Express Company (AXP), specifically updating information regarding the appointment of Daniel T. Henry as Executive Vice President and Chief Financial Officer. The amendment clarifies the compensation package approved for Mr. Henry upon his appointment, effective October 31, 2007. Key details of Mr. Henry's compensation include a significant increase in his base salary to $625,000 per annum, retroactive to October 15, 2007. Furthermore, he was awarded a non-qualified stock option to purchase 95,000 shares at an exercise price of $60.95 per share, vesting over four years. An adjustment to his potential payout under the "Portfolio Grant 2007-2009" award was also approved, with a threshold payout of $169,675 and a maximum potential payout of $2,358,125, contingent on company performance through December 31, 2009.

Key Highlights

  • 1Amendment to a previous 8-K filing concerning executive appointments.
  • 2Daniel T. Henry appointed as Executive Vice President and Chief Financial Officer.
  • 3Henry's base salary increased to $625,000 annually, retroactive to October 15, 2007.
  • 4Awarded 95,000 stock options with an exercise price of $60.95, vesting over four years.
  • 5Stock options expire on October 31, 2017.
  • 6Potential payout under the 2007-2009 Portfolio Grant ranges from $169,675 (threshold) to $2,358,125 (maximum).
  • 7Payout for the Portfolio Grant is expected in February 2010, dependent on company performance.

Frequently Asked Questions

This filing is an amendment to a previous 8-K report, providing updated and more detailed information about the compensation package approved for Daniel T. Henry upon his appointment as Executive Vice President and Chief Financial Officer.

Mr. Henry's compensation includes an increased base salary of $625,000 per annum, a stock option grant for 95,000 shares exercisable at $60.95 and vesting over four years, and an adjusted potential payout under the 'Portfolio Grant 2007-2009' which could range from $169,675 to $2,358,125 based on company performance.

The stock option granted to Mr. Henry becomes exercisable in four equal annual installments, starting on the first anniversary of the grant date (October 31, 2007) and continuing for three subsequent anniversaries. The entire option expires on October 31, 2017.

The payout for Mr. Henry's 'Portfolio Grant 2007-2009' is based on American Express Company's performance during the three-year period ending December 31, 2009. The specific performance levels required for the threshold and maximum payouts are detailed within the filing.