Investor Relations

An important part of an corporations business plan is their investor relations and these relationships should be taken very seriously. Companies want to keep the media, public, clients, and customers up to date on current financial information within the company. American Express does a great job of keeping all these publics in the know and try to make the process as simple as possible. They issue an annual report which can be easily accessed on their web site. American Express starts off by explaining basic facts and figures such as total revenues, losses from operations, net income, and total assets. These is general information for people to know to quickly see how well the company has been doing. The report then briefly becomes a marketing piece as it explains how the corporation is changing with the times.

American Express wants people to understand that they realize times are changing so they need to change as well. They explain how they are offering new products and services to better adapt to current events. This is a great way for the company to attract new business and tell how they can help the public. They are given an opportunity to tell their story and AmEx takes full advantage of that. The company also makes their 10-k filling and proxy statement available on their web site for the public to view.

Letter's to shareholders from CEO's are extremely important because it is one of the few times shareholders hear directly from the person in charge. Companies should take full advantage of this opportunity and AmEx is a great example of doing just that. The letter starts off with a big thank you to shareholders for their continued business and trust. The note also explains what the company has been doing for the last year and how they plan to move forward in the future. This is important because it keeps people in the know and makes them feel like they know exactly what is going on. After reading the letter I think investors will feel like they better understand the company, its mission, and its management. The tone of the letter really is down to earth and lets people connect with the CEO. Overall you feel a sense of gratitude from the company and understand they are working hard for their customers. This letter is really a great example of how major corporations can connect with the general public.

American Express publishes all of their earning reports on the company web site for anyone to view. The offer viewers press releases, financial tables, earning supplements, and earning slides. Looking at the press releases the information is written so the general public can understand the material and the language is not too technical. Readers are able to see how the company is making money and how stable they are throughout the different quarters. The quotes offered by the CEO and other executives are well-written and believable. They are written so the public can hear from high level executives and the executives do a good job of summarizing the quarter and earnings. The company does not have to offer to much bad news but when they do they talk about how they are handling and how they plan to move forward in the future. They talk more about progress and development rather than focusing on the negative. Overall, AmEx wants the public to understand their company and have faith for the future.
American Express uses their annual reports, letters to shareholders, and news releases to keep the public informed about the company and their financial standing. This is important because it shows the public that they are not trying to hid things and want to keep their relationships moving forward into the future. Investor relations appear to be very important to American Express and the company does a great job of managing these relationships by keeping the public informed.