American Express Company · NYSE:AXP
American Express — Shareholder Meeting (April 2018)
16 slides from American Express's shareholder meeting presentation, Apr 16, 2018
Slide 1: American Express 2018 Business, Governance & Executive Compensation Overview
American Express 2018 Investor Presentation Business, Governance & Executive Compensation Overview
Slide 2: Performance Year Highlights
Performance Year Highlights 2 Accelerate Revenue Growth Optimize Investments Reset Cost Base Strategic Priorities Our results for 2017 reflect a strong finish to our two - year game plan as we successfully executed against our key priorities laid out for 2016 and 2017 2017 Performance 2017 performan
Slide 3: Shareholder Engagement and Responsiveness to 2017 Say on Pay Vote
Shareholder Engagement and Responsiveness to 2017 Say on Pay Vote 3 What we Heard What we Did Questions about pay quantum x We set a new CEO pay target at $16.2 million, reduced from $22 million for prior long - tenured CEO Manage Compensation and Benefits Committee (CBC) discretion and clarify how
Slide 4: CEO Compensation Program Supports Strategic Goals
CEO Compensation Program Supports Strategic Goals Compensation Program Overview 4 Long - Term Incentive 3 Element 3 - Year Plan Measurements Features Payout (% of Target) Portfolio Grant Award › 3 - year financial and strategic goals › 3 - year vesting › Payout tied to 3 - year performance › Payout
Slide 5: Transparent Disclosure of Rigorous Targets
Transparent Disclosure of Rigorous Targets 5 x Each year the CBC considers the Company’s plans, the external environment and any significant business changes when selecting incentive metrics and setting targets x In setting 2017 targets, the CBC took into account the impact of the termination of our
Slide 6: 2017 CEO Executive Pay Outcomes Reflect Alignment with Performance
$2.000 $2.000 $6.625 $8.281 $5.125 $1.500 $6.681 $1.569 2017 CEO Executive Pay Outcomes Reflect Alignment with Performance Annual Incentive Award • AIA was granted at 125% of target for 2017 performance year (which is the maximum amount for extraordinary performance) • Entire AIA amount of $8.281 mi
Slide 7: Leadership Transition and Effective, Independent Board Structure
› Elected by the independent directors as a result of a vigorous vetting process, effective March 13, 2018 › Succeeds retiring Lead Independent Director Robert D. Walter › Director since 2007; has established strong working relationships with fellow directors and garnered their trust and respect › H
Slide 8: World Class Board with Deep Expertise and Independence
World Class Board with Deep Expertise and Independence 8 *3 new independent directors added since 2016 STEPHEN SQUERI Chairman and CEO, American Express ( 2018) DANIEL VASELLA Honorary Chairman and Former Chairman and CEO, Novartis AG (2012) CHARLENE BARSHEFSKY Senior International Partner , WilmerH
Slide 9: Highly Skilled and Diverse Board
YEARS <1 AVERAGE TENURE 1 - 3 6.3 YEARS 4 - 6 AVERAGE AGE 7 - 10 63.6 YEARS >10 Highly Skilled and Diverse Board 9 Diversity of Viewpoints Our Board is composed of experienced leaders with the right skills and business experience to provide sound judgment, critical viewpoints and guidance in an evol
Slide 10: Commitment to Board-Level Risk Management
Commitment to Board - Level Risk Management Our emphasis on risk management – along with solid business practices – is how we keep our promise of security, integrity and trust to our customers and other stakeholders Board of Directors: Monitors our “tone at the top” and risk culture and oversees eme
Slide 11: The Service Effect: Corporate Social Responsibility at American Express
The Service Effect: Corporate Social Responsibility at American Express Source: 2018 Proxy Statement and 2016 - 2017 Corporate Social Responsibility Report . All metrics referenced relate to 2017 unless otherwise noted. The “Service Effect” is shorthand for the positive link we see between CSR perfo
Slide 12: We Value Your Support at our 2018 Annual Meeting
We Value Your Support at our 2018 Annual Meeting 12 Proposal Board Recommendation 1 Election of all director nominees FOR 2 Ratification of the appointment of our independent accounting firm FOR 3 Advisory resolution to approve executive compensation FOR 4 Shareholder proposal: written consent AGAIN
Slide 13: Appendix A: Footnotes
Appendix A: Footnotes 13 1 Adjusted diluted EPS and adjusted ROE, both excluding the impacts of the Tax Act of $2.6 billion, are non - GAAP measures. The estimated impacts may be refined in the future as additional guidance and interpretations become available. See Appendix B for a reconciliation to
Slide 14: Appendix B: Information Regarding Non-GAAP Financial Measures
Appendix B: Information Regarding Non - GAAP Financial Measures Adjusted Total Revenues Net of Interest Expense ($ in millions) 2016 2017 GAAP Total Revenues Net of Interest Expense $ 32,119 $ 33,471 Estimated Costco - Related Revenues (a) ($ 1,193) Adjusted Total Revenues Net of Interest Expense $
Slide 15: Appendix C: American Express Business Model
Appendix C: American Express Business Model Assets Capabilities Relationships Trusted Brand Premium Positioning Channels Closed Loop Data and Information Travel Network Processing Infrastructure Marketing / Sales Risk Management Data Analytics Servicing Rewards Partnering Expense Leverage Diverse Cu
Slide 16: Appendix D: Commitment to Strong Governance and Compensation Practices
Appendix D: Commitment to Strong Governance and Compensation Practices x Active and ongoing shareholder engagement x Well - executed CEO succession plan and ongoing Board/senior management succession planning x Strong Lead Independent Director with explicit duties and responsibilities x Diverse Boar