American Express CEO Stephen Squeri Boosts Company Performance Since 2018

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.

Since 2018, its stock has delivered total annual returns of 16.6%, outperforming peers including JPMorgan Chase, Visa, and the S&P 500, though Goldman Sachs slightly exceeded it over the same period.

Squeri, 67, was born in Queens, New York, and grew up in Astoria, sharing a two-bedroom apartment with his parents and three brothers. His grandfather, Giuseppe Squeri, immigrated from Parma, Italy, through Ellis Island and worked as a porter, in a speakeasy during Prohibition, and later ran his own bar.

Squeri's father worked two full-time jobs, including as a floor manager at Bloomingdale’s. Squeri attended Monsignor McClancy Memorial High School, where he played basketball and formed a friendship with Nick Melito, now the school's president. Melito told Fortune that Squeri was an outstanding rebounder but shy during high school.

Squeri later studied at Manhattan University while working full-time at Bloomingdale’s in stock and the rug department. Today, Squeri maintains a fitness routine, including stationary bike rides and weightlifting five days a week, and serves on the boards of McClancy and Manhattan University.

He has developed relationships with figures like Delta CEO Ed Bastian and has lunched with Warren Buffett in Omaha. Squeri draws insights for business strategies from observing his four daughters and their peers.

Squeri has built relationships across industries, noting shared modest backgrounds with Ed Bastian, as both took their first flights in their early 20s. He recounted lunches with Warren Buffett, who orders Big Macs and fries, insisting on eating from the boxes.

Despite past doubts about his advancement, including a boss telling him he had topped out after a promotion to senior VP, Squeri has led American Express to sustained growth. The company now faces an uncertain economy, with Squeri tasked with maintaining satisfaction among millions of millennial and Gen Z cardholders.

American Express continues to emphasize premium offerings to retain and attract this demographic.