“American Express Suspends a Director in Foreign-Exchange Pricing Probe,” The Wall Street Journal, January 9, 2019. Apparently, AMEX and the FBI are investigating foreign-exchange pricing practices, and whether the rates customers were charged were altered after the customers got a quotation, either to increase the company’s profit or the employee bonuses. Ah, incentives.
It’s not nice to screw your customers (and increase your bonus) by manipulating information. And what does it say about the culture of the company that a director (small “d” director) did this? At least he was suspended.
Governance includes how a company disciplines those suspected of wrong-doing. And about how the company makes sure its incentive system doesn’t encourage bad behavior.