American Express

2018 Fall Investor Presentation

October 2018

Differentiated Business Model Positions Us to Win

* The growth rate of adjusted total operating expenses, a non-GAAP measure, excludes Visa/MasterCard litigation settlement proceeds, restructuring charges, Business Travel operating expenses, Q2'14 Business Travel JV gain and transaction-related costs, Q2'14 AXP Foundation contribution, Q4'15 Prepaid Services Business charge, Q2'16 gain on sale of Costco portfolio, Q3'17 charges related to US Loyalty and US Prepaid Services Businesses and Q4'17 Profit Sharing and CRA Tax Impairment from total operating expenses. See Appendix A for a reconciliation to Operating Expense.

Strategic Imperatives

Expand leadership in the premium consumer space

Billings Growth, % Increase vs. Prior year (FX-adjusted):

Q4'17 growthQ1'18 growthQ2'18 growthQ3'18 growth

US Consumer

International Consumer*

Build on our strong position in commercial payments

Strengthen our global, integrated network toprovide unique value

Over 1.5Mplaces in the U.S. started accepting

American Express®

Cards in 2017

120Issuing & AcquiringPartners with 48M cards issued as of 2017

Make American Express an essential part of ourcustomers' digital lives

Large & Global Corporate *

US SME

Int'l SME *

Note: FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes Q1'18 foreign exchange rates apply to Q1'17 results). SME refers to small and mid-sized businesses with less than $300MM in annual revenues. * See Appendix B for reported billings growthrates; ** As of FY 2017. "Billed Business Acquired" reflects the first 12 months of spending for a new customer acquired. Forcustomers acquired less than 12 months prior, internal estimates have been used for their expected spending over the 12 month period. Billed Business Acquired from Digital Channels is new spend that was acquired through a digital channel such as mobile, tablet, web vs. phone or direct mail.

Compensation Program Supports Strategic Goals

Program Structure

Base Salary

9%

12018 CEO Total Direct Compensation (TDC) Mix

2Subject to positive cumulative net income over the vesting period considering guidance from the Federal Reserve Board to risk balance our incentive programs.

Annual Incentive Award

  • Aggressive financial and Company growth goals including EPS, revenue, ROE, lending, Net Promoter Score and Merchant Coverage,along with key diversity and inclusion metrics

  • Performance measured against one scorecard for all executives to promote enterprise thinking

    Long-Term Incentive

  • Represents a significant portion of Total Direct Compensation

  • Goals are rigorous yet achievable throughsustained long-term performance

    Risk-Balancing of Incentives

  • Right balance of short- and long-termincentives, as well as control/compliancegoals

Shareholder Feedback

The Board continues to evolve our executive compensation programto respond to feedback we have received from shareholders

2017-2018 Engagement and Feedback Themes

  • •Continued robust shareholder outreach on governance and compensation, including engaging with investors representinga majority of shares outstandingsince January 2017

  • •The Board takes into consideration key feedback themes that have emerged from our dialogueand evolving best practices:

    • Quantum of prior long-tenured CEO pay

    • Goal rigor

    • Use of discretion

    • Program complexity

    • Post-retirement CEO support

    • Gender pay equity disclosure

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Disclaimer

American Express Company published this content on 18 October 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 19 October 2018 08:02:02 UTC