Amendment to American Express 1994-2006 Pay-for-Performance Deferral Program Interest Rates

Contract Categories: Human Resources › Compensation Agreements
Summary

American Express Company, through its Compensation and Benefits Committee, has updated the interest crediting rates for its 1994-2006 Pay-for-Performance Deferral Programs. The new rates are based on the company's reported return on equity (ROE) and its long-term ROE targets. For deferrals from 1994-2004, interest rates range from Moody’s A Rate to 16%, depending on ROE performance. For 2005-2006 deferrals, rates range from Moody’s A Rate to 11%. These changes affect how interest is credited to employee deferrals under these programs.

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EX-10.13 4 y30921exv10w13.htm EX-10.13: DESCRIPTION OF AMENDMENTS EX-10.13  

EXHIBIT 10.13
ADJUSTMENT OF
1994-2006 PAY-FOR-PERFORMANCE DEFERRAL PROGRAM RATES
     On January 22, 2007, the Compensation and Benefits Committee (the “Compensation Committee”) of the Board of Directors of American Express Company (the “Company”) approved the adoption of revised interest crediting rate schedules (which are based on the Company’s reported return on equity (“ROE”)) under the Company’s 1994-2004 Pay-for-Performance Deferral Programs and its 2005 and 2006 Pay-for-Performance Deferral Programs.
     For the Company’s 1994-2004 Pay-for-Performance Deferral Programs, the interest schedule provides for interest crediting on amounts deferred under such plans according to a schedule based on the reported ROE of the Company for the relevant year and the Company’s publicly announced long-term ROE target. As a result of the Compensation Committee’s action, the interest crediting schedule for these programs is now as follows:
     
ROE   Crediting Rate
Below Target ROE
   Moody’s A Rate
At Target ROE (currently 33%-36%)
   13%
Above Target ROE
   16%
     For the Company’s 2005-2006 Pay-for-Performance Deferral Programs, the interest schedule also provides for interest crediting on amounts deferred under such plans according to a schedule based on the reported ROE of the Company for the relevant year and the Company’s publicly announced long-term ROE target. As a result of the Compensation Committee’s action, the interest crediting schedule for these programs is now as follows:
     
ROE   Crediting Rate
Below Target ROE
   Moody’s A Rate
At Target ROE (currently 33%-36%)
   9%
Above Target ROE
   11%