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American Express Co.'s (AXP) Chairman and Chief Executive Ken Chenault received a 37% boost in total compensation last year as the largest credit-card issuer by spending saw its profits surge and credit expenses improve.

Chenault received a pay package valued at $23.04 million, according to the New York company's annual proxy filed with the U.S. Securities and Exchange Commission Friday. Chenault made $16.81 million in 2010, the filing said.

His compensation included a base salary of $2 million, a $2 million cash bonus, $15.3 million in stock awards and $2.2 million in options. He also received $1.02 million in "other compensation," which includes company contributions to a retirement plan and perks like personal use of company aircraft, travel benefits and other items.

The make-up of Chenault's compensation reflects a shift over the last two years that emphasizes restricted stock rather than cash.

In 2010, Chenault's compensation included a base salary of $1.94 million, a $2 million cash bonus, $2.05 million in stock awards, $9.2 million in options and $1.09 million in "other compensation."

"Our board of directors credits Mr. Chenault ... and his management team for achieving industry-leading growth and strong performance in challenging times," the filing said. "Over the past two years, we have delivered top-line and bottom-line growth, gained share in the market, and leveraged our business model to maintain our competitive edge."

American Express bounced back from the recession more quickly than its peers thanks in part to its focus on affluent borrowers.

Last year the company's profit surged 22% to $4.9 billion. Its delinquency and net charge-off rates remained near historically low levels as customers diligently paid their bills on time, a trend that has also helped competing credit-card issuers.

American Express, like Discover Financial Services (DFS), lends directly to consumers as well as processes card transactions, unlike rival card networks Visa Inc. (V) and MasterCard Inc. (MA), which only process transactions.

During the year American Express ramped up marketing as it tried to appeal to new and existing customers with rewards programs and other perks. It also has invested heavily in digital initiatives, including mobile payments and prepaid cards, as it tries to attract a broader array of consumers to its brand

Concerns about expense controls have weighed on investors' minds in recent months as payments from Visa and MasterCard from a past legal settlement come to an end and benefits from loan-loss reserves slow.

Chenault has said the company has prepared for these changes and expects to scale back in some areas, such as marketing, as necessary.

The company's shares are up more than 23% over the last year. Its shares were down 0.1% at $52.94 in after-hours trading.

-By Andrew R. Johnson, Dow Jones Newswires; 212-416-3214; andrew.r.johnson@dowjones.com

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