American Express CEO Ken Chenault will retire at then finish of the yr after 16 years within the function.
Vice Chairman Stephen Squeri, who beforehand ran the corporate’s company card enterprise, will succeed him. (American Express President Ed Gilligan had been anticipated to turn into CEO, however he died on a enterprise journey two years in the past.)
American Express was a robust performer for a lot of Chenault’s tenure however confronted actual challenges lately because it misplaced the Costco enterprise and needed to compete much more aggressively for premium cardholder enterprise that was historically its unique area.
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The firm’s shares are up 50% thus far this yr although, after being overwhelmed down within the aftermath of the Costco loss and different setbacks. They did rating exclusivity with Hilton taking that away from Citibank, although it’s small comfort for the numerous market share they gave up with the Costco loss.
Gambits that seemed extremely promising — resembling increasing into unbanked segments by way of performs with Walmart and Target, and constructing a coalition rewards program for retail (Plenti) — didn’t end up as worthwhile as hoped. Increasingly they concentrate on lending (not merely cost playing cards) and the small enterprise section.
Going ahead they face a Supreme Court case within the coming time period. And they face important competitors with Chase as they struggle to guard their Starwood co-brand deal (their second largest journey co-brand after Delta) now that Starwood has been acquired by Marriott — which has a longstanding relationship with Chase.