American Express CEO Made $27.3 Million

The chief executive officer supervising the portfolio of fastest growing credit-card delinquencies was paid a total of $27.3 million in 2008. His packages consisted of:

- $1.25 million base
- $10.2 million in stock awards
- $7.9 million in options
- $6.1 million in non-equity incentive pay
- $640,711 in pension value change
...and amusingly $1.2 million in "other compensation" which included $874,047 of "perquisites" such as $134,299 in local travel benefits (that's a lot of subway rides) and $414,702 for personal aircraft use (you are only a baller if you charge the 1 hour NetJets flight to your Centurion).

His comp is well-deserved (at least on a relative value): AXP has fallen "only" 66% in the past 12 months, compared to such other comparables as Citi (-87%) and AIG (-97.8%). It is interesting if American Express is the credit card of choice in congress and the administration... that would provide some explanation for why Cuomo and Frank haven't gone all "fraudulent conveyance" yet on his backside. Sphere: Related Content

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AmEx Will Pay To Lose You As A Customer

Things in creditcardville are very, very ugly. The latest datapoint comes from American Express which will pay cardholders $300 each to close accounts so the lender can reduce the risk of defaults. The operating implications to AXP's business are so obvious based on this development that they do not even merit commentary. People who get the buyout offer have until April 30 to pay off their entire balance, and will likely lead to a forfeiture of any program points accrued to that point.

“What AmEx is trying to do is move to the front of the line in terms of getting paid back” by customers who owe debts to multiple lenders, said Michael Taiano, an analyst at Sandler O’Neill & Partners with a “hold” rating on the company. “They clearly grew loans faster than their competitors in the years leading up to this financial crisis.”

While previously credit card companies would cherish "high risk" customers as these would be charged the highest APR rates on rolling balances, AXP is effectively claiming that loss rates are about to skyrocket, presumably based on internal data that will probably become public as soon as AXP's next earnings report.

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I've got a stomachful of Xanax. I took what was left of a bottle. It might have been too much.

You can't make this shit up. All you Hollywood agents scouring under the skirts of Daily Grill waitresses for your next script look no further (I will merely accept a firm virtual handshake and advance rights for my upcoming book), and all you employed sales people, here is a brilliant idea for how to bring your career to new heights...

Here is a guy, let's call him Mr. X (for the full blow by blow click here). Mr. X works as an institutional sales guy, a gatekeeper to the powerful worlds of hedge funds, who makes a base of 100k and total comp for three years running over a cool half a mil. So instead of focusing on a calm suburban existence, Mr. X decides to use his corporate AmEx to procure questionably sanitary services from "Ce Soir of New York" (no link, which would undoubtedly be NSFW, but here is the phone #: (212) 213-0505, toll free: (800) 621-9808). The guy does this not once, not twice, not even three time, but three and a half times (last usage was diluted by the presence of one of his hedge fund buddies, whose arm is twisted to show up at an unnamed hotel where Ce Soir's services were consummated); these charges are subsequently ascribed to the purchase of tickets for Broadway, Springsteen (2x), and U.S. Open tickets for his wife and clients. And then Mr. X gets caught... And to top this, Mr. X is married. In a subsequent psyc evaluation, an "expert" claims "[Mr.X] determined that the risk to his marital relationship outweighed the risk that Lazard would discover his expense reports were fake." If all you can come up with as defense to an arbitration panel is using escorts as a way to save your marriage , you may consider getting a second opinion. Incidentally, it is curious how Mrs. X reacted when her husband's ways were disclosed. Also curious who the menage-a-troisee was and how pervasive this practice in the industry may be.... although of course this could very well be the sole, isolated incident...

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