Ken chenault american express biography of abraham

Business executive

At a Glance…

The Merchandiser

Green, Gold, Pt, and More

Faced Challenges in high-mindedness 1990s

Moved Up and Named Successor

WTC Attack Proved Leadership Ability

Sources

As Chief executive of American Express (Am Ex), Kenneth I.

Chenault occupies lone of the most prestigious positions in the world of Indweller business. American Express is top-hole widely diversified company with assets in the areas of guarantee, brokerage, real estate, and travelling services; but its strongest put up with most profitable unit has each time been the famous American Vocalize charge card, and it job Kenneth Chenault’s job to respect the tradition continue in class twenty-first century.

A graduate ensnare Harvard Law School, Chenault has enjoyed a remarkably rapid upgrade of the corporate ladder lose ground American Express, where he was named president of the Buyer Card Group when only 38 years old. His rise pop in CEO was a historic incontestable. Many projected him as position first African American to attitude a Fortune 500 company.

Notwithstanding that he was not the cheeriness, his placement as CEO was still considered a major accomplishment.

Chenault was born in 1952 mould Hempstead, New York, an prosperous suburb of New York Get into. His father, Hortenius Chenault, was a dentist and his sluggishness, Anne, a dental hygienist. Use up the time Kenneth was capital small child, his parents pleased him to excel in bookish as well as athletic pursuits.

As a boy, Chenault freely read the biographies of undisturbed men, both black and pallid, and he grew up get better similar expectations for himself. Space fully attending a highly regarded hidden school in Garden City, Newborn York, Chenault excelled academically dowel was elected president of diadem class in high school. Pacify then enrolled at Bowdoin Academy in Maine, one of integrity country’s finest liberal arts institutions, and from there went deduct to Harvard Law School, position he earned his degree play a role 1976.

As a recent graduate forestall Harvard, Chenault had his selection of many employment opportunities view at first followed the conventional path by joining the Recent York corporate law firm exert a pull on Rogers & Wells.

It was not long, however, before no problem was tempted by the shyly and practice of business, slab in the late 1970s Chenault accepted a position at nobility Boston-based business consulting firm perceive Bain and Company. There oversight was involved in the proof and design of business strategies for some of the best bib corporations in the country, non-standard thusly acquiring an extensive knowledge promote to all aspects of the sheer world while also making senior contacts with business executives.

Cloth his tenure at Bain topmost Company, Chenault apparently decided consider it he was more interested deduct the business of

At a Glance…

Born in 1952 in Hempstead, NY; son of Hortenius (a dentist) and Anne (a dental hygenist) Chenault; married; wife’s name, Kathryn; children: Kenneth, Jr. Education: Bowdoin College, B.A., c.

1973; Altruist Law School, J.D., 1976.

Career: Actress & Wells, New York City; consultant, Bain & Company, Beantown, MA, attorney; American Express Association, New York City, 1981–, president of marketing for merchandise repair division, 1983, general manager outandout merchandise services division and common vice-president of American Express Travel-Related Services Company, 1984-87, executive headman and general manager for Inhabitant Express Platinum/Gold division, 1988, guide of American Express Consumer Greetings card Group, USA, 1989-93, vice executive, 1993-95, president/COO, 1997-01, CEO/chairman, 2001–.

Memberships: IBM, board member.

Awards:Jackie Robinson Essence, Robie Award for Achievement make a way into Industry, 1996; Black Enterprise Quarterly, BE Corporate Executive of character Year, 1999; Catalyst Award (American Express), 2001; Fortune Magazine, Suspend of Fifty Most Powerful African-American Executives in America, 2001.

Address:Office—American Phrase Consumer Card Group, USA, Earth Express Tower C, New Dynasty, NY 10285-0001

business than in righteousness abstract complexities of business alteration, and in 1981, when recognized was offered a job dress warmly American Express, he accepted nobleness challenge and began a in mint condition career at the company’s dishonorable in New York City.

American State has been a leading capital and travel services business yearn more than a hundred length of existence, with a well-established reputation brand one of the classiest deliver most profitable companies in glory world.

From its origin style an express freight service sustenance banks and other dealers embankment valuables, American Express evolved reply the world’s travel companion, plan travelers checks and international investment services for its customers go in front the globe.

Am Ex’s 1958 prelude of the famous “green card,” a charge card for ethics well-heeled traveler, greatly extended authority reach of the company’s apportion and set the scene send for later forays into a agreeable of financial services.

When Kenneth Chenault took a position respect American Express in 1981, decree had just completed the bossy significant expansion in corporate anecdote with the acquisition of interpretation New York brokerage house pounce on Shearson Loeb Rhoades, Inc. Chenault joined American Express at boss more favorable moment in picture company’s history, as the ten of the 1980s would carry tremendous growth in every offshoot of Am Ex’s constantly stretching sphere of business.

The Merchandiser

Chenault was originally hired by the produce services division of American Articulate, at the time a comparatively obscure part of the Become hard Ex empire.

Merchandise services was in the business of compromise such exclusive goods as hole up luggage, computers, and gold watches to Am Ex members alongside direct mail solicitation. Though Chenauit had no hands-on experience contain merchandising, he quickly made sovereign presence felt, and in 1983 he was named vice-president break into marketing for the division.

The pursuing year, at the age use your indicators 34, Chenauit assumed the separate of general manager of truck services and senior vice-president have possession of that division’s corporate umbrella, Earth Express Travel-Related Services Company.

Because general manager, Chenauit saw rule chief responsibilities as twofold: explicate sell goods efficiently and valuably to American Express members pivotal to protect the unusually pump up session degree of trust that affiliates had come to enjoy second-hand goods Am Ex.

American Express had on the rocks unique status in American customers, its name and logo proportionate almost without exception with illustriousness highest quality of goods stomach services.

The company represented strike as something of an absolute club, and its members anticipated to be treated as such—“membership has its privileges” was tend many years the company’s advert slogan. Chenauit therefore tried criticize ensure that the merchandise offered to members with their publication bill was of luxurious improved and that customers received unhesitating, reliable, and courteous service.

Honesty American Express name was actually the company’s most salable production, and Chenauit capitalized on ditch by moving the range frequent merchandise further upscale and action the relationship of cardmember restage club, rather than merely conferring a lot of goods uncontaminated purchase. Under Chenault’s direction, justness merchandise services division made thrash about its customers were aware brake the uniqueness of American Word compared to other mail buckle companies.

Sales at the merchandise share jumped 20 to 25 proportionality annually during the mid-1980s, move approximately $400 million in 1986.

The U.S. economy was commonly good, and Chenault’s team flash marketers had found the prim niche for their products, dramatically improving results at the bluntly line. In recognition of queen leadership, American Express promoted Chenault in 1987 to general head and executive vice-president of excellence Platinum Card/Gold Card division do in advance the Travel-Related Services Company.

In that role, Chenault was in be in power of over 5,000 employees equipping services to some four billion wealthy holders of gold contemporary platinum American Express cards, which entitled their owners to neat as a pin number of exclusive financial unthinkable travel services in addition round on those granted to all Gen up Ex members.

His promotion have a break head of the Gold Visiting-card division reflected Chenault’s success owing to a marketer of the Land Express upscale appeal, but realm tenure there would be brief.

Green, Gold, Platinum, and More

In 1989 Chenault was named president rule American Express Consumer Card Bunch, USA, thereby becoming, in say publicly words of American Express crucial executive officer (CEO) J.D.

Player III, “the quarterback of probity corporation, responsible for all playingcard operations in North America.” Change into his new position, Chenault seized control of the mainstay catch the company’s Travel-Related Services bisection, which is the oldest roost most profitable segment of birth Am Ex family of companies.

Travel-Related Services generates approximately cardinal percent of the parent company’s $25 billion in sales, reprove the cream of the division’s business is “in the cards,” as American Express executives aspire to say.

Chenault thus found in a position of astronomical responsibility at a time model rapid change in American Express’s role in the credit/charge ticket market.

Ever since the inauguration of its “green card” amuse 1958 to compete with Diner’s Club, Am Ex had invariably remained at a safe flanking from the furious battles waged by credit card companies specified as Visa and Mastercard. Dweller Express provided a charge card—requiring that items charged be pressurize somebody into for in full at distinction end of every month—that was widely used by business construct for their travel and excitement.

Visa and Mastercard, on class other hand, were credit docket companies, offering a line lose credit to a much swell up range of customers who could choose to delay payment addendum their bills by agreeing attack pay a high rate unravel interest on the outstanding balance.

For several decades, American Express was the card of choice middle wealthy travelers and business party, although it could be worn only at a select handful of airlines, restaurants, hotels, illustrious retail stores, all of whom paid American Express roughly couple percent of the amounts full to bursting for the privilege of displaying the prestigious American Express badge.

Participating merchants also had ethics assurance of knowing that their American Express customer was dinky member, and hence of clean up certain financial stability.

During the Decade, however, American Express’s dominance oust the high-end card market was challenged by the credit greetings card companies, which made inroads mid retailers and merchants by membership fee services at a much mark down fee than American Express.

Renovation the world’s largest distributor bequest credit cards, Visa could certainly point out to merchants mosey nearly every holder of hoaxer American Express card also eminent a Visa card. The purchaser did not care which slip was used, but the shopkeeper stood to gain more get away from one percent of sales jam taking the Visa over nobility American Express card.

By implementing specified a strategy, the credit pass companies had chipped away put the lid on the loyalty of American Communicate members and merchants during integrity 1980s, and it was jamming this difficult situation that Kenneth Chenault was thrust when crystal-clear took over the reins be in the region of American Express Consumer Card Task force, USA, in 1989.

Of prestige several possible responses to goodness credit card challenge, American Pronounce had already made a sizeable decision before Chenault arrived deem the scene. In 1988 grandeur company issued its own versatile credit card, known as nobleness Optima card, while continuing focus on rely on the cachet enterprise the American Express charge single point adept.

Chenault and his fellow Denizen Express executives believed that Optima would perfectly complement the customary green and gold cards; thrust at all the major vend outlets, Optima would stop picture encroachment of the credit greetings card companies upon American Express’s patronage. In addition, because only Indweller Express members could obtain righteousness Optima card, the company destined a low ratio of noninclusion among its customers.

Faced Challenges count on the 1990s

Initial results of righteousness Optima card were not bully, however, and it was remote long before Chenault and climax staff found themselves at grandeur center of a potentially disconsolate situation.

As the economy envenomed in 1990 and 1991, Chenault discovered that his Optima cardholders were proving a bad bet: their default rate was binate as high as expected, lesser in a particularly poor budgetary performance by the card share in the second half break into 1991. Major financial publications much as Business Week and Fortune played up the poor moderate, which included an apparent have a stab on the part of workers at Chenault’s Jacksonville, Florida, twig office to cover up influence full extent of their dead.

Wall Street analysts were band pleased by the sudden shocker of trouble in the token division, and the entire headlong flight tended to raise once improved the question of American Express’s position in a charge/credit store bursting with new competitors extort services.

Adding to Chenault’s headache was a minor rebellion on prestige part of Boston-area restaurateurs, who, with encouragement from Visa, challenging banded together and declared deviate they would no longer devastate the more costly American Articulate card.

This “Boston Fee Party,” as it was called, as well generated the sort of unfavourable publicity American Express had by now experienced. In response, Chenault, ambitious to pull the Am Testing Consumer Card Group through secure early 1990s crisis, promised efficient new era of customer boss merchant support at American Speak, with special attention paid unearth the company’s wealthiest and highest-spending clientele.

He also agreed bordering selective cuts in merchant fees. It was a start, nevertheless soon Am Ex’s board conj admitting the opportunity of a lifetime.

In February of 1993 Am Log forced out James Robinson Cardinal as CEO and replaced him with Harvey Golub. While domineering of upper management in rank previous era resisted change, Golub welcomed it.

Chenault blossomed botched job his leadership. In 1995 Chart Ex signed Wal-Mart and optional extra consumers signed up for stop off Am Ex card.

Moved Up beam Named Successor

Chenault was also promoted to vice chairman in 1995. Two years later, he was named president and COO. That achievement meant more time break through the public eye.

Many clamored to learn more about Chenault. Most would revel in dignity attention, but Chenault was recalcitrant. Chenault, an avid Knicks screen, traded in his front traditional seats at Madison Square Leave for a less visible speckle. He still devoted much repel to his family, despite class workload increase.

Chenault oversaw the whim of the Blue card, primate well as continued to contend with Visa and Mastercard back consumers.

The Membership Rewards was a hit with consumers. Refer to many successes, no one was surprised when Golub announced wander Chenault would take over makeover CEO when he retired. “Ken was the only senior chairman of the board who had the courage drop in define the problem, admit nearby was a problem, and proffer a possible solution,” Golub described in Fortune.

Many applauded that feat by Chenault. Though indefinite in the African-American community assumed that he would become dignity first African-American CEO of regular major U.S. corporation, Franklin Raines of Fannie Mae, received go off honor. But it ushered make real a new era, and Chenault became part of a ontogeny list of top-level black executives.

When Golub stepped down in 2001, the economy had slowed illustrious was experiencing a major unrest.

Chenault soon had to upgrade to everyone he could point out the $25 billion company. Market order to continue to oneoff in the top three, Condition Ex began budget overhauls, providing on-line services, and continued equal create new products, including Concealed Payments and the Black visitingcard. It also expanded financial utility to its international cardholders.

Goodness company also restructured its pair business lines. In the heart of all these changes, Chenault was appointed as chairman, lone four months after becoming CEO.

WTC Attack Proved Leadership Ability

In picture summer of 2001, he dual reported losses for the group of actors and announced thousands of layoffs. But no one was armed for the tragedy that occurred on September 11, 2001, care for terrorists attacked the World Commerce Center in New York.

Chenault, who was out of metropolitan, upon hearing of the go on a goslow, contacted security at the control centre, which was across the thoroughfare up one`s from the Twin Towers, celebrated had them evacuate the estate immediately.

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His number one doings were employee safety and consumer service. While the building was evacuated, according to PR Week, Am Ex’s customer service helped more than 500,000 stranded cardholders get home. The company uniform did so much as compact planes and busses to accommodate people reach their destinations. Ram Ex also waived some fees and extended credit lines succeed to help its customers.

Chenault called inculcate of his senior level operation to make sure they were okay and to conduct change emergency meeting.

On September Twentieth, he organized a meeting addendum 5,000 Am Ex employees collect address concerns. According to PR Week, his compassion and directorship skills “drew praise from various quarters.” Chenault announced that dignity company would donate one trillion dollars to the families come within earshot of the 11 Am Ex teachers who died.

He and uncluttered group of corporate leaders fall over with President George W. Chaparral to discuss the next step.

Though the travel industry was sell more cheaply hard in the wake eradicate the attacks, Chenault has antediluvian the glue that held influence company together. Though Am Previous had to move its incarnate headquarters, and many employees—including Chenault—were relocated, many were able persuade face the uncertain times thanksgiving thanks to to the CEO.

Chenault explicit in Money, “We’ve got prevalent face reality, but we can’t get mired down in reality.” The company was able in close proximity to move back into its station in the World Financial Affections in May of 2002.

Chenault force the Catalyst Award on sake of American Express in Apr of 2001.

He was dubbed in Fortune Magazine as acquaintance of the fifty most strapping African-American executives in America. Go to regularly continue to watch Kenneth Chenault, not only as he strives to keep American Express calibrate top, but as he conducts business at a level rove many deemed impossible for resolve African American to attain.

Sources

American Banker, January 27, 1995; November 20, 2000.

Black Enterprise, December 1985; Feb 1988; February 1989; August 1989; March 1990; August 1998; Sep 1999; February 2001.

Business Week, Oct 9, 1989; July 1, 1991; October 21, 1991; October 29, 2001.

Cardweek, August 2, 2002.

Directors & Boards, Winter 1999.

Ebony, February 2002.

Forbes, December 1, 1997.

Fortune, March 2, 1987; November 18, 1991; Jan 22, 2001.

Future Banker, January-February 2001.

Jet, June 15, 1992; April 1, 1996; April 23, 2001.

Money, Oct 1, 2001.

Newsweek, January 28, 2002.

PR Week, November 26, 2001.

—Jonathan Actor and Ashyia N.

Henderson