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American Express Co. is boosting its employees’ profit-sharing plan in the wake of “positive developments” brought about by the new tax law.
The company made a one-time, incremental contribution of more than $100 million to the profit-sharing plan, Jeffrey C. Campbell chief financial officer and executive vice president of finance, said Jan. 18 during an investor call.
The announcement came in the company’s recent filings with the Securities and Exchange Commission filed shortly before its investor earnings call.
The contribution increase comes as companies like Visa Inc., Alfac Inc., Nationwide Mutual Insurance Co., and Sun Trust Banks Inc. have raised their matches for employee 401(k) contributions in response to the tax bill signed into law in late December.
“Overall, we believe the Tax Act will be a positive development for both the U.S. economy and American Express,” Kenneth I. Chenault, chairman and chief executive officer of American Express said in the company’s filing.
The lower tax rate for corporations under the new law and “momentum in the business” loosened up about $200 million more than the company had planned to invest in “customer-facing growth initiatives” in 2018, Chenault said in the filing.
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