Summary
This 8-K filing from American Express Company (AXP), filed on January 29, 2010, reports on executive compensation adjustments approved by the Compensation and Benefits Committee. Effective February 1, 2010, the annual base salaries for key named executive officers were increased. The most significant change involves the CEO, Kenneth I. Chenault, whose base salary rose from $1.25 million to $2.0 million. Other executives receiving base salary increases include Edward P. Gilligan (Vice Chairman), Stephen J. Squeri (Group President), and Daniel T. Henry (CFO). These adjustments reflect a strategic shift in the executive compensation mix, with an increased weighting towards base salary and a corresponding reduction in the aggregate compensation potentially earned through annual incentive awards and cash-based portfolio grants. The company emphasizes that its overall executive compensation strategy remains focused on longer-term incentives, particularly stock-based awards.
Key Highlights
- 1American Express Company (AXP) reported on January 29, 2010, via an 8-K filing, changes to its executive compensation structure.
- 2Effective February 1, 2010, the annual base salaries for several named executive officers were increased.
- 3CEO Kenneth I. Chenault's base salary saw a substantial increase from $1,250,000 to $2,000,000 per annum.
- 4Other executives receiving base salary hikes include Vice Chairman Edward P. Gilligan, Group President Stephen J. Squeri, and CFO Daniel T. Henry.
- 5The Compensation and Benefits Committee approved a shift in the compensation mix, increasing base salaries.
- 6This increase in base salary was accompanied by a reduction in the aggregate compensation achievable through annual incentive awards and cash-based portfolio grants.
- 7The company reiterates that its executive compensation program continues to prioritize longer-term incentives, especially stock-based awards.