Chenault Exits Boards -- WSJ

By Patrick Thomas 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (December 28, 2018).

Kenneth Chenault, the former chairman and chief executive of American Express Co., is stepping down next year from his board roles at International Business Machines Corp. and Procter & Gamble Co.

Mr. Chenault, 67 years old, plans to retire from the boards of IBM and P&G on Feb. 13, the companies said Thursday in securities filings.

P&G said Mr. Chenault made the decision to provide more time to focus on a range of activities in the next phase of his life. He joined the board of the Cincinnati-based consumer-products giant in 2008.

At IBM, Mr. Chenault served as a director for more than 20 years, the company said.

The exits come less than a year after the Long Island, N.Y., native joined the boards of Facebook Inc. and Airbnb Inc. He also joined venture-capital firm General Catalyst as chairman and managing director earlier this year.

"I've been trying to recruit Ken for years," Facebook CEO Mark Zuckerberg said in a Facebook post in January.

An Airbnb spokesman said Thursday Mr. Chenault isn't leaving the company's board. A representative of Facebook said Mr. Chenault will continue to serve on its board.

Mr. Chenault is one of the nation's most prominent African-American CEOs and led American Express through the aftermath of 9/11 and the financial crisis.

His departure from the iconic card company came after a tumultuous period in which he fought to revive AmEx's fortunes following the loss of a key partnership with Costco Wholesale Corp. He was succeeded as CEO by Stephen Squeri, a three-decade American Express veteran who previously ran its division in charge of corporate cards.

It is highly unusual for directors of S&P 500 companies to serve on so many boards. As of 2016, fewer than 1% of directors held five board seats and fewer than 5% served on four boards.

More than three-fourths of S&P 500 companies curb board members' outside directorships in some fashion, up from 71% in 2010, according to executive-search firm Spencer Stuart. Among those with limits for all directors, 20% set a cap of three seats in 2016 -- up from 16% in 2010.

(END) Dow Jones Newswires

December 28, 2018 02:47 ET (07:47 GMT)

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