8-KLeadership ChangesExhibits & Filings

AMERICAN EXPRESS CO 8-K Report, Executive Changes (Jul 25, 2013)

Filed July 25, 2013For Securities:AXP

Summary

This 8-K filing from American Express (AXP) on July 25, 2013, announces an amendment to the Senior Executive Severance Plan, effective for agreements signed on or after September 1, 2013. The key change introduces a pro-rated annual incentive award (AIA) for eligible executives in the year their severance begins. This pro-rated AIA will be paid out according to the normal bonus schedule, typically in the first quarter of the following year. The calculation of the pro-rated AIA will be based on the executive's most recently paid bonus. Notably, for senior executives (Band 95 and above) whose bonuses are tied to the Incentive Compensation Plan, this pro-rated amount may also be subject to reduction at the Compensation and Benefits Committee's discretion, depending on the Company's overall performance. This amendment clarifies and potentially enhances severance benefits for a specific group of executives.

Key Highlights

  • 1American Express amended its Senior Executive Severance Plan, effective September 1, 2013.
  • 2The amendment introduces a pro-rated annual incentive award (AIA) for executives commencing severance.
  • 3The pro-rated AIA will cover the period of active employment during the severance year.
  • 4Payment of the pro-rated AIA will occur at the standard bonus payout time, typically Q1 of the following year.
  • 5The pro-rated AIA is calculated based on the executive's most recent bonus payment.
  • 6For Band 95 and above executives, the pro-rated bonus may be reduced based on company performance, at the committee's discretion.

Frequently Asked Questions

The main change is the introduction of a pro-rated annual incentive award (AIA) for eligible executives who begin their severance on or after September 1, 2013. This award covers the portion of the year they were actively employed before their severance began.

The pro-rated AIA will be paid out at the time bonuses are normally paid, which is typically in the first quarter of the year following the severance commencement.

The pro-rated AIA is calculated based on the amount of the most recent bonus that was paid to the executive as of the end of their active employment.

Yes, for executives at Band 95 and above, whose bonuses are part of the Incentive Compensation Plan, the Compensation and Benefits Committee has the discretion to reduce the pro-rated AIA based on the Company's performance.