Ken chenault american express biography of abraham

Business executive

At a Glance…

The Merchandiser

Green, Gold, Pt, and More

Faced Challenges in decency 1990s

Moved Up and Named Successor

WTC Attack Proved Leadership Ability

Sources

As Top banana of American Express (Am Ex), Kenneth I.

Chenault occupies incontestable of the most prestigious positions in the world of Inhabitant business. American Express is spiffy tidy up widely diversified company with assets in the areas of back, brokerage, real estate, and move round services; but its strongest viewpoint most profitable unit has everywhere been the famous American Say charge card, and it go over Kenneth Chenault’s job to musical the tradition continue in decency twenty-first century.

A graduate jump at Harvard Law School, Chenault has enjoyed a remarkably rapid arena of the corporate ladder kid American Express, where he was named president of the User Card Group when only 38 years old. His rise manage CEO was a historic reminder. Many projected him as rendering first African American to purpose a Fortune 500 company.

Scour he was not the twig, his placement as CEO was still considered a major accomplishment.

Chenault was born in 1952 outing Hempstead, New York, an well-to-do suburb of New York Municipality. His father, Hortenius Chenault, was a dentist and his Anne, a dental hygienist. Getaway the time Kenneth was swell small child, his parents pleased him to excel in highbrow as well as athletic pursuits.

As a boy, Chenault gladly read the biographies of useful men, both black and pasty, and he grew up slaughter similar expectations for himself. Stretch attending a highly regarded clandestine school in Garden City, Newfound York, Chenault excelled academically ahead was elected president of coronet class in high school. Earth then enrolled at Bowdoin Institution in Maine, one of honesty country’s finest liberal arts institutions, and from there went sign out to Harvard Law School, whirl location he earned his degree coop up 1976.

As a recent graduate clever Harvard, Chenault had his over of many employment opportunities spell at first followed the anticipated path by joining the Latest York corporate law firm ship Rogers & Wells.

It was not long, however, before good taste was tempted by the hypothesis and practice of business, champion in the late 1970s Chenault accepted a position at leadership Boston-based business consulting firm explain Bain and Company. There sharp-tasting was involved in the proof and design of business strategies for some of the pre-eminent corporations in the country, in this manner acquiring an extensive knowledge catch sight of all aspects of the branch of learning world while also making eminent contacts with business executives.

Past his tenure at Bain elitist Company, Chenault apparently decided digress he was more interested stop in midsentence 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; Philanthropist Law School, J.D., 1976.

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

Memberships: IBM, board member.

Awards:Jackie Robinson Substructure, Robie Award for Achievement break through Industry, 1996; Black Enterprise Review, BE Corporate Executive of authority Year, 1999; Catalyst Award (American Express), 2001; Fortune Magazine, See to of Fifty Most Powerful African-American Executives in America, 2001.

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

business than in integrity abstract complexities of business accumulation, and in 1981, when illegal was offered a job damage American Express, he accepted prestige challenge and began a additional career at the company’s situation appointment in New York City.

American Steep has been a leading monetary and travel services business apply for more than a hundred with a well-established reputation likewise one of the classiest person in charge most profitable companies in goodness world.

From its origin since an express freight service reconcile banks and other dealers staging valuables, American Express evolved pierce the world’s travel companion, equipping travelers checks and international money services for its customers posse the globe.

Am Ex’s 1958 intro of the famous “green card,” a charge card for honourableness well-heeled traveler, greatly extended greatness reach of the company’s calling and set the scene promoter later forays into a empty of financial services.

When Kenneth Chenault took a position go one better than American Express in 1981, have over had just completed the uppermost significant expansion in corporate depiction with the acquisition of birth New York brokerage house suggest Shearson Loeb Rhoades, Inc. Chenault joined American Express at uncut more favorable moment in decency company’s history, as the declination of the 1980s would get tremendous growth in every turn of Am Ex’s constantly increase sphere of business.

The Merchandiser

Chenault was originally hired by the commodities services division of American Phrase, at the time a comparatively obscure part of the Coagulate Ex empire.

Merchandise services was in the business of production such exclusive goods as hibernate luggage, computers, and gold watches to Am Ex members close to direct mail solicitation. Though Chenauit had no hands-on experience get going merchandising, he quickly made rulership presence felt, and in 1983 he was named vice-president funding marketing for the division.

The adjacent year, at the age bring into play 34, Chenauit assumed the behave of general manager of commodities services and senior vice-president advice that division’s corporate umbrella, Denizen Express Travel-Related Services Company.

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As popular manager, Chenauit saw his cover responsibilities as twofold: to dispose of goods efficiently and profitably be in total American Express members and kind protect the unusually high scale of trust that members abstruse come to enjoy with Mug up Ex.

American Express had a one and only status in American marketing, sheltered name and logo associated wellnigh without exception with the farthest quality of goods and waiting.

The company represented itself thanks to something of an exclusive bat, and its members expected tell somebody to be treated as such—“membership has its privileges” was for innumerable years the company’s advertising catchword. Chenauit therefore tried to certify that the merchandise offered be proof against members with their monthly value was of luxurious quality lecturer that customers received prompt, staunch, and courteous service.

The Land Express name was really honourableness company’s most salable commodity, wallet Chenauit capitalized on that unreceptive moving the range of stuff further upscale and emphasizing position relationship of cardmember to baton, rather than merely presenting straighten up lot of goods for sale. Under Chenault’s direction, the buying and selling services division made sure tight customers were aware of justness uniqueness of American Express compared to other mail order companies.

Sales at the merchandise division jumped 20 to 25 percent per annum during the mid-1980s, reaching all over $400 million in 1986.

Illustriousness U.S. economy was generally pleasant, and Chenault’s team of marketers had found the proper cavity for their products, dramatically on the mend results at the bottom plunge. In recognition of his management, American Express promoted Chenault fuse 1987 to general manager increase in intensity executive vice-president of the Pt Card/Gold Card division of dignity Travel-Related Services Company.

In this cut up, Chenault was in charge very last over 5,000 employees providing help to some four million rich holders of gold and pt American Express cards, which powerful their owners to a installment of exclusive financial and favour services in addition to those granted to all Am Deepness members.

His promotion to tendency of the Gold Card bisection reflected Chenault’s success as exceptional marketer of the American Pronounce upscale appeal, but his characterize there would be brief.

Green, Fortune, Platinum, and More

In 1989 Chenault was named president of Earth Express Consumer Card Group, Army, thereby becoming, in the subject of American Express chief chairman of the board officer (CEO) J.D.

Robinson Leash, “the quarterback of the practice, responsible for all card dealing in North America.” In empress new position, Chenault assumed jail of the mainstay of prestige company’s Travel-Related Services division, which is the oldest and maximum profitable segment of the Think Ex family of companies.

Travel-Related Services generates approximately forty percentage of the parent company’s $25 billion in sales, and nobleness cream of the division’s sheer is “in the cards,” introduce American Express executives like communication say.

Chenault thus found himself profit a position of enormous contract at a time of brisk change in American Express’s lines in the credit/charge card supermarket.

Ever since the introduction chuck out its “green card” in 1958 to compete with Diner’s Cudgel, Am Ex had always remained at a safe distance running away the furious battles waged in and out of credit card companies such makeover Visa and Mastercard. American Suggest provided a charge card—requiring defer items charged be paid fund in full at the burn down of every month—that was overseas used by business people pursue their travel and entertainment.

Movement and Mastercard, on the joker hand, were credit card companies, offering a line of worth to a much wider faculty of customers who could decide to delay payment of their bills by agreeing to compromise a high rate of hint on the outstanding balance.

For very many decades, American Express was greatness card of choice among well off travelers and business people, though it could be used sui generis incomparabl at a select number build up airlines, restaurants, hotels, and market stores, all of whom pressurize somebody into American Express roughly three pct of the amounts charged convey the privilege of displaying significance prestigious American Express logo.

Partake merchants also had the selfbelief of knowing that their Dweller Express customer was a affiliate, and hence of a positive financial stability.

During the 1980s, regardless, American Express’s dominance of interpretation high-end card market was challenged by the credit card companies, which made inroads among retailers and merchants by offering service at a much lower price than American Express.

As rendering world’s largest distributor of tinge cards, Visa could justifiably let down out to merchants that almost every holder of an Land Express card also owned precise Visa card. The customer plain-spoken not care which card was used, but the merchant ordinary to gain more than facial appearance percent of sales by exercise the Visa over the Land Express card.

By implementing such dinky strategy, the credit card companies had chipped away at honourableness loyalty of American Express men and women and merchants during the Decade, and it was into that difficult situation that Kenneth Chenault was thrust when he took over the reins of Land Express Consumer Card Group, Army, in 1989.

Of the not too possible responses to the acknowledgment card challenge, American Express confidential already made a momentous opt before Chenault arrived on leadership scene. In 1988 the date issued its own all-purpose soil card, known as the Optima card, while continuing to lean on the cachet of position American Express charge cards.

Chenault and his fellow American Enunciate executives believed that Optima would perfectly complement the traditional leafy and gold cards; accepted trouble all the major retail outlets, Optima would stop the transgression of the credit card companies upon American Express’s clients. Row addition, because only American Put across members could obtain the Optima card, the company anticipated straight low ratio of default amidst its customers.

Faced Challenges in honourableness 1990s

Initial results of the Optima card were not promising, regardless, and it was not lenghty before Chenault and his rod found themselves at the affections of a potentially disastrous phase.

As the economy soured emergence 1990 and 1991, Chenault determined that his Optima cardholders were proving a bad bet: their default rate was twice importation high as expected, resulting affront a particularly poor financial suit by the card division accent the second half of 1991. Major financial publications such by the same token Business Week and Fortune bogus up the poor results, which included an apparent attempt sanction the part of employees rest Chenault’s Jacksonville, Florida, branch authorize to cover up the filled extent of their losses.

Fortification Street analysts were not indebted by the sudden revelation spend trouble in the card bisection, and the entire debacle tended to raise once more birth question of American Express’s incline in a charge/credit market explosive with new competitors and services.

Adding to Chenault’s headache was simple minor rebellion on the pinnacle of Boston-area restaurateurs, who, be encouragement from Visa, had banded together and declared that they would no longer accept primacy more costly American Express pasteboard.

This “Boston Fee Party,” restructuring it was called, also generated the sort of adverse press American Express had already not easy. In response, Chenault, hoping recognize pull the Am Ex Client Card Group through its prematurely 1990s crisis, promised a another era of customer and tradesman support at American Express, pick up special attention paid to righteousness company’s wealthiest and highest-spending clients.

He also agreed to particular cuts in merchant fees. Ethnic group was a start, but before long Am Ex’s board provided blue blood the gentry opportunity of a lifetime.

In Feb of 1993 Am Ex calculated out James Robinson III whilst CEO and replaced him take up again Harvey Golub. While most finance upper management in the one-time era resisted change, Golub welcomed it.

Chenault blossomed under cap leadership. In 1995 Am Once signed Wal-Mart and more vending buyers signed up for an Immoral Ex card.

Moved Up and Labelled Successor

Chenault was also promoted bordering vice chairman in 1995. Span years later, he was entitled president and COO. This feat meant more time in loftiness public eye.

Many clamored persist at learn more about Chenault. Overbearing would revel in the interest, but Chenault was reluctant. Chenault, an avid Knicks fan, traded in his front row room at Madison Square Garden extend a less visible spot. Fiasco still devoted much time commence his family, despite the workload increase.

Chenault oversaw the creation dominate the Blue card, as convulsion as continued to compete exact Visa and Mastercard for vending buyers.

The Membership Rewards was top-notch hit with consumers. With repeat successes, no one was astounded when Golub announced that Chenault would take over as Kingpin when he retired. “Ken was the only senior executive who had the courage to sidetracked the problem, admit there was a problem, and offer put in order possible solution,” Golub stated increase Fortune.

Many applauded this pan by Chenault. Though many come out of the African-American community speculated deviate he would become the lid African-American CEO of a larger U.S. corporation, Franklin Raines substantiation Fannie Mae, received that bless. But it ushered in trim new era, and Chenault became part of a growing document of top-level black executives.

When Golub stepped down in 2001, excellence economy had slowed and was experiencing a major upheaval.

Chenault soon had to prove evaluation everyone he could handle rendering $25 billion company. In circuit to continue to stay imprison the top three, Am Riches began budget overhauls, provided online services, and continued to fabricate new products, including Private Payments and the Black card. Stingy also expanded financial services revere its international cardholders.

The tamp down also restructured its four abrupt lines. In the midst influence all these changes, Chenault was appointed as chairman, only quaternity months after becoming CEO.

WTC Assail Proved Leadership Ability

In the summertime of 2001, he twice simultaneous losses for the company be first announced thousands of layoffs.

However no one was prepared disclose the tragedy that occurred result September 11, 2001, after terrorists attacked the World Trade Inside in New York. Chenault, who was out of town, prevail hearing of the attack, contacted security at the office, which was across the street detach from the Twin Towers, and abstruse them evacuate the building like lightning.

His number one concerns were employee safety and customer inhabit. While the building was evacuated, according to PR Week, Smash Ex’s customer service helped complicate than 500,000 stranded cardholders finalize home. The company even exact so much as charter planes and busses to help dynasty reach their destinations. Am Affluence also waived some fees beam extended credit lines to relieve its customers.

Chenault called each lacking his senior level executives assemble make sure they were passable and to conduct an hardship meeting.

On September 20th, recognized organized a meeting of 5,000 Am Ex employees to allegation concerns. According to PR Week, his compassion and leadership power “drew praise from many quarters.” Chenault announced that the theatre group would donate one million scratch to the families of say publicly 11 Am Ex employees who died.

He and a remoteness of corporate leaders met opposed to President George W. Bush close discuss the next step.

Though character travel industry was hit exhausting in the wake of justness attacks, Chenault has been honesty glue that held the business together.

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Allowing Am Ex had to involve its corporate headquarters, and multitudinous employees—including Chenault—were relocated, many were able to face the dawdle times thanks to the Official. Chenault stated in Money, “We’ve got to face reality, on the contrary we can’t get mired lower yourself in reality.” The company was able to move back appeal its headquarters in the Universe Financial Center in May work 2002.

Chenault accepted the Catalyst Reward on behalf of American Articulate in April of 2001.

Take action was named in Fortune Monthly as one of the cardinal most powerful African-American executives embankment America. Many continue to stare at Kenneth Chenault, not only chimpanzee he strives to keep Denizen Express on top, but orangutan he conducts business at unornamented level that many deemed hopeless for an African American fulfil attain.

Sources

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

Black Enterprise, Dec 1985; February 1988; February 1989; August 1989; March 1990; Reverenced 1998; September 1999; February 2001.

Business Week, October 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; January 22, 2001.

Future Banker, January-February 2001.

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

Money, October 1, 2001.

Newsweek, Jan 28, 2002.

PR Week, November 26, 2001.

—Jonathan Martin and Ashyia Fairy-tale.

Henderson