American Express chief executive to retire next year
NEW YORK — Kenneth Chenault, longtime chairman and CEO of American Express, is stepping down next year, the company announced Wednesday.
Chenault, 66, one of the most prominent black corporate leaders in the U.S., will be replaced on Feb. 1 by Stephen Squeri, who will take over as American Express’ CEO and chairman of the board. Squeri, 58, is currently vice chairman at American Express.
Chenault took over as CEO in 2001 and guided the company through several seismic events, including the terrorist attacks on Sept. 11, 2001. The company’s headquarters in Manhattan is next door to the site of the World Trade Center, and it was severely damaged in the attack.
He also led the company through the financial crisis and subsequent Great Recession of 2008.
But Chenault’s biggest challenge in his tenure would be new and fierce competition for its wealthy card members and credit card users.
Citigroup and Visa were able to steal away American Express’ longtime customer Costco two years ago, which was a major blow to the company since Costco represented one of AmEx’s biggest co-brand partnerships.
Meanwhile, Chase launched a credit card called the Chase Sapphire Reserve Card that became a blockbuster hit.
However AmEx pushed back, upping the rewards and perks of its Platinum Card card and has been able to retain at least a majority of its customers.
“We have faced three major challenges, and the reality is we have emerged stronger than we were before,” Chenault said.
Warren Buffett, the largest shareholder of American Express through his company Berkshire Hathaway, praised Chenault’s performance.
“Ken’s been the gold standard for corporate leadership and the benchmark that I measure others against,” Buffett said in a statement.
The announcement came as American Express announced its third-quarter results. The company posted a profit of $1.36 billion, or $1.50 a share, compared with $1.14 billion, or $1.20 per share, in the same period a year earlier. The results beat analysts’ expectations.