Credit card issuer American Express Co. (AXP) revealed that Chairman and Chief Executive Officer Kenneth Chenault received a 2012 total compensation that was 24 percent higher than last year.
The San Jose, California-based company revealed this in a definitive proxy statement filed with the U.S. Securities and Exchange Commission on Friday.
Chenault, who has led American Express for nearly 12 years, received a total compensation of $28.49 million, including base salary, stock grants and incentives in 2012, compared to the $23.04 million he received last year, and $16.81 million he got in 2010.
The total compensation received by Chenault in 2012 includes $2.0 million as base salary, $18.86 million as stock grants, cash incentive of $4.0 million, and all other compensations, including restricted share units or RSUs.
Chenault' salary remained unchanged from 2011, while cash awards doubled and stock increased more than 20 percent.
However, the included total direct compensation for Chenault for 2012 performance declined 8 percent to $22 million from last year's $24 million.
The Compensation and Benefits Committee considered shareholder-value creation as well as performance from various perspectives—financial, customer, employee and strategic. The Committee also considered the impact of settlements with several bank regulators last October, after a review of certain of our U.S card practices, and additional cardmember reimbursements.
Chenault joined American Express in 1981 and was named president of the U.S. division of American Express Travel Related Services Co., Inc. in 1993, vice chairman of American Express Co. in 1995, president and chief operating officer in 1997 and chairman and chief executive officer in 2001.
Meanwhile, the filing shows a 17 percent drop in total 2012 compensation for Chief Financial Officer Daniel Henry to $6.23 million from last year's $7.50 million.
The compensation committee determines appropriate compensation for the CEO as well as other executive officers and makes a recommendation to the Board for their ratification.
AXP closed Friday's regular trading session at $64.70, up $0.14 or 0.22% on a volume of 5.81 million shares.
by RTT Staff Writer
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