I Endured the Amex AGM Audio Cast So You Didn't Have To!
Records were smashed, AI got a nod, and shareholders brought some heat! Here’s your bite-sized brief of American Express's big virtual get-together on April 29, 2025.
The Scorecard: Amex's Blockbuster 2024 & Bright 2025 Start
Chairman and CEO Steve Squeri kicked off with a rundown of the company's performance, and it sounds like 2024 was quite the year for Amex.
Ka-Ching! Records All Around:
They raked in record revenues of a cool $66 billion, up 10% (FX adjusted).
Net income also hit a record high, soaring over $10 billion, which translates to $14.01 per share (a 25% jump year over year, helped by a sale).
Card members were busy, with total billed business hitting a massive $1.6 trillion.
Amex welcomed 13 million new proprietary card members in 2024, with strong demand for their premium fee-based goodies.
Shareholders got some love too, with $7.9 billion returned in capital last year.
The "Fab Four" Strategy: Squeri highlighted their ongoing focus on four strategic imperatives: expanding leadership in the premium consumer space, building on their strong position in commercial payments, strengthening their global integrated network, and building on their unique global position.
Kicking Off 2025 with a Bang: The momentum didn't stop, with Q1 2025 revenues at $17 billion (up 8% FX adjusted) and net income of $2.6 billion.
A Big Birthday! This year marks Amex's 175th year in business – quite the journey from an express delivery company to the "global premium financial and lifestyle company" they are today. The core brand promise? Still all about "trust, security and service."
The Virtual Voting Booth: Nods, Debates, and Decisions
No AGM is complete without the formal voting, and Amex had five items on the agenda.
The Easy Approvals:
Electing the Dream Team: All 12 director nominees were duly elected to the board.
Auditors Get the Nod: The appointment of PricewaterhouseCoopers as the company's independent registered public accounting firm for 2025 was ratified.
Thumbs Up for Exec Pay: The advisory vote to approve the compensation of the company's named executive officers also passed.
Shareholder Showdowns (Spoiler: They Didn't Pass):
DEI in the Crosshairs: The National Legal and Policy Center proposed removing DEI (Diversity, Equity, and Inclusion) metrics from executive compensation incentives. Their representative, Luke Perlow, argued that such programs could be discriminatory, pose legal risks (citing a Starbucks case), and divert resources from shareholder value, advocating for merit-based policies instead. The Board opposed this.
The Call for "Politically Neutral" Ads: Bowyer Research, on behalf of Thomas Rivers, put forward a proposal asking Amex to commit to politically neutral advertising policies. Isaac Willower, representing the filer, criticized Amex's past involvement with GARM (Global Alliance for Responsible Media), suggesting it targeted right-leaning media and that neutrality is now best practice. The Board also opposed this proposal.
The Verdict: In the end, neither of the shareholder proposals received the required majority support and therefore did not pass.
Before the vote, a couple of questions were fielded regarding the proposals: one on how "compensation actually paid" figures into CEO target pay (answer: see the proxy statement), and another on whether Amex would consider adopting explicit non-discriminatory advertising policies (answer: Amex advertises to best reach customers and complies with all laws).
Q&A with the Big Cheese: AI, Staff, and Spending
After the formal business, CEO Steve Squeri took some general questions from shareholders:
AI on the Agenda: Armando Ortiz asked if Amex will use AI for everyday operations like customer support and data entry. Squeri confirmed that yes, Amex colleagues are already using various AI technologies (both GenAI and traditional machine learning) to better serve customers and improve operational efficiencies in areas like customer servicing and technology.
Counting Colleagues: Andrew Brian Rogers questioned why there isn't more analysis or comparison of temporary versus permanent staff in financial reports, given temporary staff's contributions. The response was that Amex discloses total headcount figures according to regulatory requirements and values all its colleagues.
Consumer Spending & Global Jitters: Mark Zaschen had two questions:
Are customers pulling back on big-ticket purchases? Squeri noted they continue to see consistent spending trends among their premium customer base but said it's too early to predict future economic impacts.
Will deglobalization or anti-American sentiment affect company strategy? Squeri stated it does not change their strategy, emphasizing Amex's great value propositions, its status as one of the most admired brands globally, and its commitment to working with global partners and showing up locally for customers.
The Takeaway: Amex Expresses Confidence
The American Express 2025 AGM painted a picture of a company celebrating strong financial achievements and a landmark anniversary, all while navigating the complexities of the modern global economy and shareholder expectations. They're leaning into their strategic pillars, embracing technology like AI, and, despite some pointed questions from shareholder proponents, managed to get all their management proposals passed.
And just like that, you're all caught up!
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Disclaimer: Please remember, the thoughts expressed here are just opinions based on publicly available information like earnings report. This is not financial advice! Investing involves risks, and you should always do your own research and consider your personal financial situation before making any investment decisions. Talk to a qualified financial advisor if you need personalized advice