American Express (NYSE:AXP)
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American Express Co. (AXP) President Alfred Kelly will leave the company and seek a chief executive position elsewhere, the company said Monday.

The company said the impetus for Kelly's departure early next year is that he won't have a chance to succeed Chairman and Chief Executive Kenneth I. Chenault for some time. Kelly, a 22-year veteran of American Express, also oversaw the head of the global consumer group for about two years, which included consumer and small business charge cards and gift cards.

"Al made clear to me that he wanted the opportunity to run a company as chief executive," said Chenault, 58. "Given my own plans for the coming years, we both agreed that was not likely to happen at American Express in the short term."

A successor to Kelly's position as the No. 2 executive hasn't been determined yet, a person familiar with the situation said. Several American Express executives could be in line.

Kelly's name has been mentioned as one of several potential successors to Bank of America Corp. (BAC) CEO Ken Lewis, who said he will step down at the end of this year.

American Express is struggling with a cutback in spending by consumers, and with the fallout from an ill-timed expansion of credit-card lending undertaken shortly before the economic downturn. 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.

American Express received a $3.39 billion government investment last year through the Troubled Asset Relief Program; in July, it paid back the investment.

Also during the financial crisis, it became a bank holding company. To bolster funding in a still-shaky credit market, American Express plans to re-enter the market for personal savings deposit accounts.

An internal memo from Chenault, reviewed by Dow Jones Newswires Monday, said of Kelly, "Al has agreed to stay on until early next year to continue to lead our transition to a bank holding company and to act as a consultant to me on a variety of business issues." Chenault has been CEO since 2001.

American Express also announced other management and organizational changes.

The company is now grouping together global consumer, small business and network business and appointed Vice Chairman Edward P. Gilligan to head the group, effective immediately.

Due to the change, Anre Williams, president, Global Commercial Card, and Charles Petruccelli, president, Global Business Travel and Foreign Exchange, will report directly to Chenault, not Gilligan anymore, and will retain their current responsibilities, according to the internal memo.

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.

According to the internal memo, American Express will "continue to make significant investments in this area."

Additionally, a new Enterprise Growth group to drive the company's entry into new payment areas, among other things, is being established.

"This group will focus on leveraging our existing assets and capabilities to drive new revenue growth and will identify emerging payments technologies that can extend our leadership beyond the traditional payments arena," the internal memo said.

A senior leader from outside American Express will be recruited for the position and Chenault expects to announce the hire within the next couple of months, according to the internal memo.

(Tess Stynes contributed to this article.)

- By Jessica Papini, Dow Jones Newswires; 212-416-2172; jessica.papini@dowjones.com