Form 4: American Express Director Acquires Share Equivalent Units Through Deferred Compensation Plan

Christopher David Young, a director at American Express, acquired share equivalent units through the company's Directors' Deferred Compensation Plan.

Summary

• On June 30, 2024, Christopher David Young, a director of American Express, acquired share equivalent units.
• The acquisition was made pursuant to the Directors' Deferred Compensation Plan.
• Young acquired 174.85 share equivalent units at a price of $228.77, bringing his total holdings to 17,861.756 share equivalent units.
• These units are convertible immediately upon termination of service as a Director and have no expiration date.
• The share equivalent units will be settled in cash following termination of service as a Director.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of share equivalent units by a director suggests confidence in the company. The transaction is part of a standard compensation plan.

Positives

• The acquisition of share equivalent units by a director signals confidence in the company's future.
• The Directors' Deferred Compensation Plan allows directors to align their interests with those of shareholders.

Future Outlook

The share equivalent units will be settled in cash following termination of service as a Director.

Industry Context

Directors' Deferred Compensation Plans are common in publicly traded companies to align the interests of directors with those of shareholders. This filing is a routine disclosure of a transaction under such a plan.

Comparison to Industry Standards

• Deferred compensation plans for directors are a standard practice among large publicly traded companies, including financial institutions like JPMorgan Chase & Co. and Citigroup Inc.
• These plans typically allow directors to defer receipt of fees in exchange for share equivalent units, aligning their interests with long-term shareholder value.
• The specific terms of these plans, such as vesting schedules and settlement methods, can vary but generally aim to incentivize directors to focus on the company's long-term performance.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's performance.

Key Dates