AmEx Ups Base Salaries For Top Execs

NEW YORK (TheStreet) -- American Express' (AXP) four top executives, including Chairman and CEO Ken Chenault, will receive substantial salary raises this year, as the credit card and travel services company is the latest financial firm to shift compensation away from large cash bonus pools.

American Express said the increase in annual base salaries was part of a review of its executive compensation program aimed at "reducing the aggregate compensation that generally could be earned through annual incentive awards and the company's cash-based portfolio grant program," according to a Securities and Exchange Commission filing. The changes were approved on Monday and are effective Monday, Feb. 1.

CEO Chenault's annual salary will rise $750,000 to $2 million, while Vice Chairman Edward P. Gilligan's salary will rise by $350,000 to $1.45 million.

Additionally, the annual salary for Stephen J. Squeri, American Express' group president for Global Services and its Chief Information Officer, will rise by $250,000 to $1 million. CFO Daniel T. Henry's salary has been increased by $150,000 to $850,000, the filing said.

American Express' overall executive compensation program for its top executive officers continues to be weighted toward longer-term incentives, particularly stock-based awards, it said.

The decision by American Express comes as Wall Street is under scrutiny over compensation practices. Firms in general seem to be moving away from large cash bonus awards.

New York Attorney General Andrew Cuomo earlier this month sent letters to the largest banking institutions including Bank of America (BAC), Citigroup (C) , JPMorgan Chase (JPM) and Goldman Sachs (GS), among others, requesting detailed information regarding their bonus structures and compensation practices.