EXHIBIT 99.1
NEW YORK, June 27, 2000 - The following announcement is excerpted from a
letter to employees that was issued here today by Kenneth I. Chenault,
president and chief operating officer of American Express:
"I am pleased to announce a number of important organizational changes that
will help accelerate the implementation of our growth strategies and our
transformation into a global company.
"As you know, Harvey is retiring early next year as CEO of the company. We
have worked hard to ensure as seamless a transition as possible from him to
me. Our intent is to continue the company's positive momentum into 2001 and
minimize any disruption to the business. We therefore decided to put in place
the key elements of the new organization structure prior to beginning work on
the company's 2001 plan. In doing so, the individuals responsible for
implementation will be part of the planning process and can then begin the
year ready to execute quickly and fully.
"Effective immediately, the company's principal lines of business will be
organized under four Group Presidents who will report to me:
o The Global Financial Services Group will be led by Jim Cracchiolo. Jim
will be responsible for our financial services businesses around the
world, leading the ongoing implementation of our U.S. financial services
strategy and the effort to accelerate our growth outside the United
States. American Express Financial Advisors (AEFA) and American Express
Bank (AEB) will report to Jim. In addition, Jim will retain
responsibility for the consumer card business, card operations and risk
management outside the United States, as well as our Global Network
Services (GNS) business.
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o The U.S. Consumer and Small Business Services Group will be led by Al
Kelly. As announced last month, Al will be responsible for U.S. Consumer
Card, Small Business Services and Consumer Travel, as well as U.S. Card
Operations, American Express Centurion Bank and U.S. Risk Management. In
addition, Al will take on responsibility for the card-related, fee-based
services businesses of American Express Relationship Services (AERS). Al
will focus on continuing the tremendous momentum that has established us
as a leader in the U.S. consumer card and small business arenas, which
continue to contribute a major share of the company's revenues and
profits.
o The Global Corporate Services Group will be led by Ed Gilligan. Ed will
be responsible for Corporate Card and Business Travel worldwide, with a
particular focus on increasing growth outside the United States. The
International Travel Services Group will now report to Ed. He will
continue to be responsible for U.S. Corporate Card, Corporate Purchasing
Card, Business Travel and Tax & Business Services. Ed will also retain
responsibility for the company's critically important
business-to-business electronic commerce initiative.
o The Global Establishment Services and Travelers Cheque Group will be led
by David House. Dave will be responsible for our Establishment Services
businesses worldwide, with an emphasis on increasing merchant coverage
and building our business outside the United States. International
Establishment Services will report to Dave, and he continues to have
responsibility for our U.S. Establishment Services Group. In addition,
Dave will be responsible for our global Travelers Cheque Group (TCG), a
business that has continued to gain share in a market where we have been
the industry leader for many years.
"I am also announcing today the formation of the Global Leadership Team (GLT).
The GLT will be responsible for establishing the company's overall strategic
direction, providing company wide oversight for all of our businesses, and
ensuring close coordination among all of our units around the world. Harvey
and I, along with the four Group Presidents, Vice Chairman Jon Linen and Chief
Financial Officer Gary Crittenden will comprise the GLT. The GLT replaces the
current Office of the Chief Executive.
Background
"These changes, the result of an extensive organizational and business review,
are designed to speed the implementation of our growth strategies, sharpen the
global focus of major areas of our business and broaden the next generation of
executive leadership. I also wanted to reduce the number of my direct reports
so that I can focus more attention on major strategic and business
initiatives; on important external constituencies; and on a number of my key
leadership priorities over the next few months.
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"One of these priorities is to increase my involvement with our Internet
initiatives, with a focus on strengthening our overall e-commerce development
efforts. To facilitate this, I am creating an Internet business development
utility under Anne Busquet, who will now report to me as President of
Interactive and Information Services. Anne will partner with the business unit
heads in developing our Internet initiatives and will be responsible for three
interactive units: Business Development, Enterprise Development and Internet
Investments. Anne will also continue to lead the Stored Value and Educational
Lending businesses, as well as smart card development and Customer Information
Management. Because I have asked Anne to increase her focus on our Internet
activities, the card-related fee services businesses of AERS will now report
to Al Kelly, head of Consumer Card and Small Businesses Services.
"Today's announcement also follows a series of discussions I have had with
Dave Hubers, President and CEO of AEFA. Last year, Dave told me he wanted to
retire after 36 years with AEFA. Throughout his career, Dave has been an
excellent leader who has demonstrated an unwavering commitment to our company
values, and his record of achievement has been outstanding. As the unit's CEO
since 1993, Dave has led the successful growth of the company's core financial
planning business while implementing a number of new strategic initiatives to
ensure AEFA is prepared to meet the competitive challenges of the future. Dave
decided to postpone his retirement until we began implementing AEFA's new
financial services strategy, which includes the roll out of the platform
strategy that provides advisors with a choice of career options. Now that this
important initiative is off to a solid start, Dave felt the time was right to
pursue his personal plans.
"At my request, Dave has agreed to stay on as AEFA's chairman until March,
2001, and he will work closely with Jim Cracchiolo to help ensure a smooth
transition. Effective immediately, Jim will become CEO of AEFA, and he will be
moving to Minneapolis. The AEFA Senior Leadership Team will report directly to
Jim.
"Given AEB's new role as part of a larger Global Financial Services
organization, John Ward, Chairman and CEO of the Bank, has decided to leave
the company to pursue other opportunities. John has had an outstanding banking
career spanning over 30 years, first with Chase Manhattan and then with
American Express. John has led AEB since joining American Express in 1996 and
the Travelers Cheque Group since 1997. During his tenure, John redirected the
Bank away from commercial lending activities to Private Banking and Personal
Financial Services - businesses closer to our core strengths and capabilities.
John will continue in his role as Chairman of the Bank until late September of
this year.
"I want to thank both Dave and John for their strong commitment to our company
and for the many contributions they each have made to our success.
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"Richard Holmes, currently head of Private Banking at AEB, will replace John
as President and CEO of the Bank, and the AEB executive team will report to
him, effective immediately. Richard will report to Jim. Richard has done a
terrific job in leading and growing our Private Banking activities since
joining the company in 1996. He has extensive experience in overseeing a
variety of global banking activities, both with the Bank of America and Wells
Fargo prior to joining American Express. These included serving as head of
Bank of America's Latin America division and its worldwide Private Bank.
"The responsibilities and reporting relationships of the other members of the
Planning & Policy Committee remain unchanged."
American Express Company is a diversified worldwide travel, financial and
network services company founded in 1850. It is a world leader in charge and
credit cards, Travelers Cheques, travel, financial planning, business
services, insurance and international banking.
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