By Angela Chen
American Express Co. has promoted Steve Squeri to vice chairman
and reorganized some of its top roles in the wake of the death of
president of Edward Gilligan in late May.
Mr. Gilligan, widely viewed as the man most likely to become the
next chief executive, collapsed and died on the way home from a
business trip on May 29. His death left the company without a clear
successor at a time when it is facing a number of difficulties.
In a memo sent to staff, Chief Executive Kenneth Chenault said
that the "realignment of several businesses and reporting lines"
was crucial to building momentum.
Mr. Squeri, now vice chairman, will take on responsibility for
Open, the company's small-business payments provider, in addition
to his current role overseeing the company's shared services
organizations.
Doug Buckminster, currently president of global network and
international card services, will take on responsibility for One
Europe, and Chief Marketing Officer John Mayse will take on an
additional role overseeing the digital partnership and development
team.
President of global banking Paul Fabara will be elected an
officer of the company. The presidents of consumer products and
global merchant services will now report directly to Mr.
Chenault.
American Express's revenue has repeatedly fallen below its
internal goals despite strong credit trends. It recently announced
that it would end a 16-year relationship with Costco Wholesale
Corp. in which its plastic was the only credit card accepted at the
warehouse club. AmEx also lost an antitrust lawsuit that was filed
by the Justice Department.
Shares were down 0.7% in midday trade on Wednesday and had
fallen about 13% this year through Tuesday's close.
Write to Angela Chen at angela.chen@dowjones.com
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