The CEO who was told he'd never run Amex has made it cool again-and is trouncing the S&P 500

Key Points:

• Steve Squeri, CEO of American Express since 2018, transformed the company's strategy by focusing on affluent millennials and Gen Z customers willing to pay premium fees for luxury perks, leading to the highest returns among major U.S. financial firms over eight years.
• Initially underestimated due to his modest background and wardrobe, Squeri underwent a personal makeover advised by HR, which helped him gain the board's confidence and later spearhead a corporate transformation emphasizing premium products and customer experience.
• Under Squeri's leadership, Amex revamped its Platinum Card with increased fees but added valuable benefits, resulting in doubled new account acquisitions and high retention, while also expanding partnerships and lifestyle perks to maintain relevance post-COVID.
• Squeri implemented a company-wide bonus system based on overall corporate performance rather than individual business units, fostering collaboration and strategic investment decisions across Amex’s operations.
• Despite strong recent growth and innovative strategies, Squeri faces challenges including increased competition in the premium card market, international acceptance issues, and potential economic headwinds affecting Amex’s core affluent customer base and loan portfolio.