The American Express CEO salary is undoubtedly one of the highest amongst global card companies. American Express Company (AMEX) is among the topmost card payment service providers not in America but across many countries in the world. The top helmsman, responsible for the daily smooth business operations worldwide, deserves a good paycheck commensurate to the company’s size, profile, and reputation.
Stephen Squeri, an alumnus of Manhattan College, is at the helm of affairs at American Express Company. He has held this position for 4 years. He took over the helm in 2018. Despite already being a global firm, Squeri added his quota to the further globalization drive of the company and has so far seen tremendous growth in several aspects.
On taking this position, Squeri was handed a total compensation payment of $20.7 million. This consisted of a base salary of $1.5 million, cash incentive awards of $4.5 million, annual long-term restricted stock awards worth $10.2 million, and additional performance-based stock options worth $4.5 million. The American Express CEO has been changing ever since depending on results and targets Squeri and his team achieve. Aside from these, the paramount authority to increase Squeri’s pay lies solely in the hands of the board. Fortunately, the relationship between Stephen Squeri and the board of American Express has been a cozy one.
Stephen Squeri’s pay remained the same for 2019 but was reduced to $19.96 million in total compensation for 2020. This was due to the effects of the covid-19 global disaster that affected almost all aspects of the economy. The revenues of companies were slashed and top firms suffered more losses than others. In response to the global pandemic, most CEOs and other top executives of banks and other financial services providers decided to take pay cuts to help cushion the effects on their respective organizations. These pay cuts were mostly on cash bonuses and stock incentives while base salaries often remain unchanged.
Stephen Squeri received a pay bump for 2021
Last year, 2021, was a year of recovery for the financial giants as revenues and profits grew. The card company posted revenues in excess of $42.4 billion for the year ending 2021. In the first quarter of 2021, American Express declared revenue of $11.7 billion which was a 29% increase from that of 2020. These improvements did not go unnoticed as the board decided to reward Squeri with a pay rise. The American Express CEO salary was raised to $25.5 million. The company’s board described this in its regulatory filings to the Securities and Exchange Commissions (SEC) as the total direct compensation for the year 2021. This came as a shocker to Stephen Squeri as he was expecting a total payout of $20.5 million. But the board in its wisdom decided to top up the amount with an extra 39%. Of this amount, $9.5 million was received as cash, $15.449 million as equity, and the rest in form of pension and other performance-based bonuses. Further breakdown of the total compensation shows that $1.5 million was received as base salary, $8 million as a bonus, $2.899 million in stock options that vests in a couple of years, $12.549 million in stocks, and $548,492 in sundry compensations. The breakdown shows that 95% of the American Express CEO salary for 2021 was performance-based while 67% is based on the company’s performance in the future.
Justifying their actions for Squeri’s pay rise, the board states that Squeri has helped transformed the company’s culture where employees and communities are as important as customers. This action according to the board, aided the evolution of the card company’s modus operandi through tested enterprise-wide strategies with a focus on long-term sustainable growth. The compensation is in line with the attainment of the goals set by the board at the beginning of the year and the decision of the benefits and compensation committee in charge of these affairs.
Another factor responsible for the rise is the increase in the company’s revenue and profits for the 2021 fiscal year. With the recovery of the economy and restoration of global travels, tourism flourished once more and as such, more transactions were made globally with American Express cards. Also, more cards were printed and distributed to users worldwide even as the company spreads its tentacles into new regions globally. All these added to the increase in revenues and profits which the board happily shared with Squeri.
Stephen Squeri is in his 37th year at American Express
Stephen Squeri’s rise to the top of one of the world’s largest companies isn’t by mistake or luck, Squeri has actually put in a lot of work while learning the ropes at the giant. If Squeri wasn’t a good fit, he wouldn’t have been leading the company responsible (through its cards) for 22.9% of total dollar transactions on credit cards. American Express is listed by Forbes as the 23rd most valuable brand in the world with more than 114.4 million cards in circulation as of December 2019. Only an experienced professional can see to the maintenance of the daily routine while charting a new course for the firm’s growth.
Squeri joined the card makers in 1985 as a manager at its Travellers Cheque Group. This was after his four years at Arthur Anderson as a management consultant. He rose through the ranks to become the president of the company’s Establishment Services group in the US and Canada in 2000. He was charged with heading the Corporate Card group from 2000 to 2005. A move that saw him aid the card business globalization of American Express. From 2005 to 2009, he held sway as the company’s Corporate Development chief where he oversaw several acquisitions and mergers. Stephen Squeri eventually became American Express Group president in 2009 and further consolidated on globalization. This became necessary as Visa and MasterCard, two other payment card brands, seem to be controlling the global market. One of the products of this venture was the Global Services Group which he led and oversaw briefly. Squeri was promoted to the position of Vice Chairman in 2015 and eventually became the CEO on February 1 after the retirement of Kenneth Chenault who had spent 37 years at the American firm, was due for retirement.
American Express is involved in a massive globalization strategy
His primary focus as the helmsman at American Express has always been globalization. The company is doing well and growing at the moment. However, MasterCard and Visa are two other global brands that seem to have the upper hand in this aspect. In a bid to justify the American Express CEO salary he receives, Squeri has left no stone unturned in this quest of his. The tides now seem to be turning in the company’s favor with the massive aggressive marketing strategy the company has embarked upon. From sports, and fashion shows to financial news, the company now utilizes the most viable means to reach out to potential customers. These campaigns are yielding fruits that American Express would better understand and appreciate in the coming years. Whether Stephen Squeri will still remain at the top job till then is a question only the board can answer.