American Express, one of the world’s most recognizable financial services companies, has been a leader in the credit card and travel services industries for decades. With a strong global presence and a reputation for innovation, the company’s success is often attributed to its leadership. At the helm of this corporate giant is the CEO, a position that comes with immense responsibility—and, of course, a substantial salary.
In this detailed post, we’ll explore the salary and compensation of the American Express CEO, Stephen Squeri (as of 2025), breaking down the components of his pay, how it compares to industry peers, and the factors that influence executive compensation at one of the most prestigious financial services firms in the world.
Who is the Current CEO of American Express?
The current CEO of American Express is Stephen Squeri, who has been leading the company since February 1, 2018. Squeri joined American Express in 1985 and worked his way up through various leadership roles, including Vice Chairman and Group President of Global Corporate Services. With nearly four decades of experience at the company, Squeri has been instrumental in shaping the company’s strategy, particularly in the areas of digital transformation and customer experience.
Under Squeri’s leadership, American Express has seen significant growth in its membership base, increased its focus on small businesses, and expanded its presence in international markets. His leadership has earned him recognition in the financial world, and his compensation reflects the value he brings to the company.
Breaking Down the CEO’s Salary
Executive compensation, particularly for CEOs of Fortune 500 companies, is typically far more complex than a simple paycheck. Stephen Squeri’s salary as the CEO of American Express is no exception. His compensation package includes several components, each designed to reward performance, incentivize future success, and align his interests with those of the company’s shareholders.
Here’s a breakdown of Stephen Squeri’s compensation:
1. Base Salary
The base salary is the fixed annual amount paid to the CEO, regardless of the company’s performance. For Stephen Squeri, the base salary is typically around $1.5 million per year, a figure that is competitive with other CEOs in the financial services industry. While this may seem substantial, it is only a small portion of his total compensation.
2. Annual Performance Bonus
The annual bonus is tied to the company’s performance metrics, such as revenue growth, profitability, and customer retention. In recent years, Squeri has earned bonuses in the range of $5–$7 million, reflecting the strong financial performance of American Express under his leadership.
3. Stock Awards and Equity Compensation
One of the largest components of Squeri’s compensation is stock awards. These are designed to align his interests with those of shareholders by tying a significant portion of his pay to the company’s stock performance. In 2022, for example, Squeri received stock awards valued at approximately $15 million, which vest over several years.
4. Other Benefits and Perks
In addition to his salary, bonus, and stock awards, Squeri receives other benefits, including retirement contributions, health insurance, and access to company-owned facilities and transportation. These perks are valued at $200,000–$500,000 annually, depending on the year.
5. Total Compensation
When all components are added together, Stephen Squeri’s total compensation typically ranges from $20 million to $25 million annually, depending on the company’s performance and stock valuation.
How Does the CEO Salary Compare to Industry Peers?
To put Stephen Squeri’s compensation into perspective, it’s helpful to compare it to the salaries of CEOs at similar companies in the financial services sector.
- Visa (Alfred F. Kelly Jr.): The CEO of Visa earns a total compensation package of approximately $24–$30 million, making it slightly higher than Squeri’s. However, Visa’s market valuation is significantly larger than that of American Express.
- Mastercard (Michael Miebach): Mastercard’s CEO earns a total compensation package in the range of $20–$25 million, comparable to Squeri’s.
- PayPal (Dan Schulman): PayPal’s CEO earns around $20–$23 million, similar to Squeri’s, though PayPal focuses more on digital payments than traditional financial services.
While Squeri’s compensation is competitive, it’s worth noting that American Express places a strong emphasis on rewarding long-term performance, particularly through stock awards. This ensures that the CEO’s interests remain aligned with the company’s success over time.
Factors Influencing the CEO’s Compensation
Several factors determine the compensation of the American Express CEO. These include:
1. Company Performance
American Express’s financial performance is a key driver of executive compensation. Metrics such as revenue growth, net income, and stock performance are closely monitored by the board of directors when determining the CEO’s pay.
2. Shareholder Returns
To align the CEO’s interests with those of shareholders, a significant portion of Squeri’s compensation is tied to stock performance. This means that if the company’s stock performs well, Squeri benefits directly through stock awards and equity incentives.
3. Industry Benchmarks
The board of directors also considers industry benchmarks when setting the CEO’s pay. By analyzing the compensation packages of CEOs at companies like Visa, Mastercard, and PayPal, American Express ensures that its pay structure remains competitive.
4. Leadership Achievements
Squeri’s leadership achievements, such as expanding the company’s digital capabilities and growing its customer base, also play a role in determining his compensation. The board recognizes the value of his contributions and rewards him accordingly.
The Debate Around CEO Salaries
Executive compensation, particularly for CEOs of large corporations, is often a topic of public debate. Critics argue that CEO salaries are excessively high, particularly when compared to the average employee’s pay. In the case of American Express, the median employee salary is approximately $70,000 per year, meaning the CEO earns hundreds of times more than the average worker.
Proponents of high CEO salaries, however, argue that these compensation packages are justified by the immense responsibility and pressure that come with leading a global corporation. CEOs like Stephen Squeri are tasked with making decisions that impact thousands of employees, millions of customers, and billions of dollars in revenue.
Transparency and Accountability in Executive Compensation
American Express is committed to transparency when it comes to executive pay. The company publishes detailed information about its CEO’s compensation in its annual proxy statement, which is available to shareholders and the public. This ensures accountability and allows stakeholders to understand how the CEO’s pay is determined.
Additionally, the company has implemented policies to ensure that executive compensation is tied to performance. For example, stock awards are typically subject to vesting periods, meaning the CEO must remain with the company and meet performance targets to fully realize their value.
Key Takeaways
Stephen Squeri’s salary as the CEO of American Express reflects his leadership, the company’s performance, and industry benchmarks. Here are the key takeaways:
- Base Salary: Around $1.5 million annually.
- Total Compensation: Typically ranges from $20 million to $25 million, including bonuses, stock awards, and other benefits.
- Performance-Based Pay: A significant portion of Squeri’s compensation is tied to the company’s financial and stock performance.
While the debate around CEO salaries continues, it’s clear that companies like American Express view executive compensation as an investment in leadership. By offering competitive pay packages, they aim to attract and retain top talent capable of driving long-term success.
FAQ
1. What is the base salary of the American Express CEO?
The base salary of the American Express CEO, Stephen Squeri, is approximately $1.5 million per year. This is the fixed portion of his compensation and does not depend on the company’s performance.
2. How much does the American Express CEO earn in total compensation?
Stephen Squeri’s total annual compensation typically ranges between $20 million and $25 million, which includes his base salary, performance bonuses, stock awards, and other benefits.
3. What are the largest components of the CEO’s compensation?
The largest component of the CEO’s compensation is stock awards and equity, which are valued at approximately $15 million annually. These awards are tied to the company’s stock performance and often vest over several years.
4. How is the CEO’s bonus determined?
The annual performance bonus is based on key performance metrics, such as revenue growth, profitability, customer satisfaction, and overall company performance. Bonuses for Stephen Squeri have ranged from $5 million to $7 million annually in recent years.
5. How does the American Express CEO’s salary compare to other CEOs in the financial industry?
Stephen Squeri’s compensation is competitive with other CEOs in the financial services industry. For example, the CEOs of Visa and Mastercard earn total compensation packages in the range of $20 million to $30 million, making Squeri’s pay comparable to his industry peers.
Conclusion
The salary of the American Express CEO is more than just a number—it’s a reflection of the company’s priorities, performance, and commitment to leadership excellence. Stephen Squeri’s compensation package, while substantial, is carefully structured to reward performance and align his interests with those of shareholders.