finance
American Express CEO Stephen Squeri Boosts Company Performance Since 2018
Stephen Squeri became CEO of American Express in 2018 after a 30-year career at the company. Under his leadership, the company has focused on premium credit cards for younger affluent consumers, leading to stock returns of 16.6% annually. This performance exceeds that of major peers like JPMorgan Chase and Visa over the same period.
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Squeri joined American Express in 1985 as a manager in the Travelers Cheque Group after working at Accenture. Over the next three decades, he held roles in tech operations, commercial cards, corporate and merchant franchises, and led a restructuring.
In 2016, while considered for CEO to succeed Ken Chenault, Squeri received advice from the head of HR to update his wardrobe to align with executive expectations. He then worked with a clothing expert who reviewed his closet and selected new items, including suits, shirts, and accessories, which Squeri purchased using his American Express card.
This change contributed to his appointment as CEO in early 2018.
Since taking the helm, Squeri has shifted American Express's strategy to target affluent younger consumers, including Gen Z and millennials, with premium cards offering enhanced perks. He observed from his own daughters' experiences that this demographic values luxury benefits like lounge access, Uber credits, and hotel privileges, while also seeking value.
Howard Grosfield, chief of U.S. consumer services at American Express, stated that Squeri focused on segments where the company could differentiate itself. In September, American Express increased the annual fee for its Platinum Card from $695 to $895, adding credits for services such as Resy, Uber One, and hotel stays, which Squeri said provide an additional $1,500 in annual value.
The company reported that this refresh led to the most successful launch in its history, with new U.S. Platinum account acquisitions doubling in the three weeks following the change and retention rates remaining high despite the fee increase. American Express ranks as the eighth largest U.S. financial services company by market capitalization at $200 billion and is Warren Buffett's second-largest holding at Berkshire Hathaway behind Apple.
