AmEx chief nets cool $50m in 2007

American Express Co, the credit card and travel services company, said on Monday Chief Executive Kenneth Chenault was awarded about $50.1 million in compensation in 2007.

According to the company's proxy filing with the US Securities and Exchange Commission, Chenault was awarded a $1.24 million salary, a $6 million bonus, $500,000 of non-equity incentive plan compensation, and $1.07 million of other compensation.

Chenault was also granted restricted stock units valued at $6 million as of the grant date, an additional restricted stock award valued at $2.07 million as of the grant date, and stock options valued at $33.24 million as of the grant date, the filing shows.

Some of the awards reflected performance prior to 2007, the filing said.

Other compensation included such things as $323,844 for personal use of company aircraft, $126,992 for a home security system, dividend payouts, company contributions to defined contribution plans, and other items.

Compensation is based on salary, bonus, the value of stock options and other awards granted during the year, and incentives and perks. Chenault, 56, has been New York-based American Express' chairman and chief executive since 2001.

Profit at American Express rose 8 percent last year to $4.01 billion, or $3.36 per diluted share, as revenue increased 10 percent to $27.73 billion.

The company last month said results met or exceeded its long-term financial targets, despite a weakening economy and business environment in December. Chenault said at the time that the company's focus on wealthier customers should help it weather economic conditions better than many competitors.

American Express shares fell 14 percent last year, compared with a 21 percent drop in the Standard & Poor's Financials Index. The company's shares have fallen 13 percent this year, and closed Monday up 15 cents at $45.21.

Agencies

(China Daily 02/27/2008 page16)