Edward Gilligan, president of American Express for the past two years, died after becoming seriously ill on a flight back to New York from a business trip on Friday (May 29), the company said in a statement.
Gilligan had been with the company for decades, having started his career with American Express as an intern 35 years ago, eventually becoming vice chairman in 2007 and president in 2013.
In the statement announcing Gilligan’s death, American Express CEO Chairman Ken Chenault said Gilligan left “an indelible imprint on practically every area of our business, from commercial card and travel to international, consumer, small business, merchant services, network services, and, most recently, the group forging our digital partnerships and driving payment innovations.”
Chenault added in the statement that for the time being direct leaders previously under Gilligan’s watch will report directly to him. The Wall Street Journal noted Friday that Gilligan was viewed as a likely successor to Chenault.
Gilligan’s sudden passing, according to WSJ, leaves the company without a clear chairman in waiting just as Amex is “facing a number of difficulties.” Amex had recently announced the end of its 16-year relationship with Costco Wholesale Corp., wherein Amex cards were the only ones accepted at the latter’s warehouse locations. The company also lost an antitrust lawsuit filed by the Justice Department.
Several analysts told The Journal that Gilligan’s death leaves the board with an unusual situation, in that succession planning usually focuses on the death of the person at the helm of the company, rather than his/her heir apparent. Jeffrey Cohn, who advises on CEO succession, told The Journal that Amex directors will most likely identify other succession candidates and “put them on an accelerated development path.” However, “the problem is that there is no such thing as accelerated development” track for a CEO transition, he said.
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