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

Deborah P. Majoras, a director of American Express, acquired share equivalent units through the company's Directors' Deferred Compensation Plan.

Summary

• On June 30, 2024, Deborah P. Majoras, a director of American Express, acquired share equivalent units.
• The acquisition was made pursuant to the Directors' Deferred Compensation Plan.
• A total of 79.23 share equivalent units were acquired at a price of $228.77 per unit.
• Following the transaction, Majoras beneficially owns 2,887.126 share equivalent units.
• These units are convertible immediately upon termination of service as a Director and have no expiration date, and will be settled in cash following termination of service as a Director.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and well-managed company. The sentiment is neutral to positive as it shows director alignment with company performance.

Positives

• The acquisition of share equivalent units demonstrates the director's continued investment in the company.
• The Directors' Deferred Compensation Plan aligns the interests of directors 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 a common practice in corporate governance, allowing directors to align their interests with the long-term performance of the company. This filing reflects a routine transaction within that framework.

Comparison to Industry Standards

• Deferred compensation plans for directors are a standard practice among publicly traded companies, including competitors like Visa (V) and Mastercard (MA).
• The specific terms of these plans, such as the vesting schedule and payout method, can vary, but the underlying principle of aligning director compensation with shareholder value is consistent.
• The number of share equivalent units held by directors is also comparable to industry standards, reflecting their ongoing investment in the company's success.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.

Key Dates