Bailout Watch #10: CEO secure at American Express

It would be hard to top the money American Express laid out to ensure the security of its CEO Kenneth Chenault in 2008. He received $200,898 in company-paid expenses for a home security system. By contrast, such costs for Edward P. Gilligan, vice chairman, were only $1,609, while Amex spent $4,510 to secure the home of Alfred F. Kelly, president. Daniel Henry, the company’s chief financial officer, received no home security allotment, and only $513 was paid on behalf of Stephen J. Squeri, executive vice president, corporate development and chief information officer. 

But the home security system was just one sliver of Chenault’s overall security expenses. Amex paid nearly $46,000 for his “security during personal trips” plus “local travel” payments totaling $134,299 for the CEO’s personal use of company-owned cars, and another $414,702 for his personal use of company aircraft. The footnotes in the company's financial filings explain that American Express' security policy requires the CEO to use company-owned aircraft and autos for personal as well as business travel. 

The company has received $3.4 billion in federal bailouts. It ranks as the nation’s largest credit card issuer based on charge volume, which totaled $457.2 billion, up 2.4 percent in 2008, according to The Nilson Report, a newsletter covering the credit card industry.—Andrea Rock 

Comments

[Joe Leahy]

Chenault overextended the company (Blue Card!!!). Get rid of this bum. Come back Howard Clark. Come back Jimmy "Three Sticks" Robinson.
Oh, for the good old days.

[Jim Faryar]

Remember the good old days? The green card was like a second passport. The American Express Office in Paris was like a second US Consulate. It's where you could go for help and where you could leave messages for travelling friends (the oasis where they would stop to refresh). Then, American Express entered the banking world of gold and black cards, and can't be of help to anyone, because it is running scared: it's communicating this anxiety to loyal, long-term, never made a late patment, credit-worthy customers by establishing credit caps, where there were none before, and reducing credit lines. Do they really need to advertise their poor financial management by promoting their the lack of confidence to customers with good financial management???

[Carmen Diaz]

I agree with Jim Faryar that the 'good old days'are fondly remembered but truly gone. Many countries do not have AMEX offices nor reps, rather banks, etc., where you can apply for a card or supposedly cash AMEX travler's checks. Today, I encountered a problem with AMEX TC's purchased at a US Bank that my daughter could not redeem at the AMEX rep bank in another country. I tried calling the foregin bank and they were totatlly indifferent and essentially offerred no help. I then called the US AMEX 800 help number. What did I get? I got a rep who could not understand my English nor I hers. She finally transferred me to a male counterpart. First question I asked was "Are you (yourself) located in the US? The question was rhetorical. Of course he wasn't nor was the first rep. I refuse to speak with anyone in Timbuktu who hasn't a clue to my problem except what they read in an algorithm on a computer screen. Yes, the halcyon days are gone and I refuse to purchase anymore AMEX traveler's checks and I am looking for ways to replace my AMEX card which has now been capped. AMEX apparently expects me to continue to be a devoted customer which I have been for 30 plus years. AMEX has become one big unkown but for sure they are not devoted to their customers. No more. At least with a debit card I know what I get.