NEW YORK (Reuters) - American Express Co increased the base pay of Chief Executive Kenneth Chenault to $2 million from $1.25 million, the company reported on Friday in a regulatory filing.
The largest U.S. credit card company by purchases also increased the pay of three other senior executives: Edward Gilligan, vice chairman; Stephen Squeri, group president of global services and chief information officer; and Daniel Henry, executive vice president and chief financial officer.
American Express said in the filing it was cutting bonuses and boosting base salaries, following a trend in the industry of reducing incentive comp, which can sometimes spur managers to take undue risk.
Chenault told employees in a memo in September that American Express would reverse companywide pay cuts instituted in early 2009. He cited improving business conditions.
The plan included reversing a 10 percent salary cut for executives above the level of senior vice president. It also allowed for merit pay increases and resuming contributions to corporate retirement plans this month.
American Express planned to maintain previous cuts on expenses, however, including travel, entertainment, meetings, consulting and training.
American Express last June repaid the $3.4 billion bailout it received as part of the largest taxpayer rescue of the financial system.
Chenault's total compensation package is expected to be disclosed early this year. His 2008 package totaled $27.33 million, a 5 percent increase over what he made in 2007 even though the company faced ballooning credit losses.
His 2008 pay included $18.12 million in stock and option awards, $6.11 million in non-equity incentive plan compensation, $641,000 of pension value and non-qualified deferred compensation and $1.21 million in other compensation.
Additional perks included use of the company's aircraft, automobiles, and a home security system.
(Reporting by Steve Eder; editing by John Wallace and Derek Caney)
