American Express President To Leave; Co Shuffles Management

   DOW JONES NEWSWIRES 
 

American Express Co. (AXP) appointed Vice Chairman Edward P. Gilligan to head up its global consumer, small business and network units. And, President Alfred F. Kelly Jr. has decided to seek a chief executive position elsewhere.

The company, which unlike most rivals issues cards and processes transactions, has been hurt as customers reduce their spending and some fall behind on their bills. It has been expanding its product offerings, including recent plans to re-enter the market for personal savings deposit accounts.

"Al made clear to me that he wanted the opportunity to run a company as chief executive," said Chairman and Chief Executive Kenneth I. Chenault. "Given my own plans for the coming years, we both agreed that was not likely to happen at American Express in the short term," leading to Kelly's decision to seek other opportunities.

Kelly will continue to lead the company's transition to a bank holding company until his departure early next year, Chenault said.

Stephen J. Squeri was promoted to group president at its new global services organization, which will include customer-service, technologies, business processing and information management, American Express said. He previously was in charge of technologies and corporate development.

A senior level executive from outside the company is being recruited to head a new enterprise growth unit to drive the company's entry into new payment areas, among other things.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]