Ally Bank 2011 Annual Report Download - page 246

Table of Contents
Ally Financial Inc. • Form 10−K
As of December 31, 2011, Ally had repaid more than 25% of its TARP obligations. Therefore, 25% of IRSUs granted will be immediately payable to
recipients upon the vesting date(s).
Incentive Compensation Determination for the NEOs
At the beginning of 2011, the Committee established proposed incentive compensation levels for each of the NEOs up to the maximum level permitted
by TARP of one−third of their total compensation. As noted above, IRSU awards are the only permitted incentive compensation for the NEOs. Individual
goals and objectives related both to Ally performance and individual performance including the performance of the individual's business unit or function
were set for the awarding of incentive compensation at year−end.
Based on its reviews of Ally and individual performance, the Committee granted the IRSU awards to the NEOs as indicated in the Summary
Compensation Table. The value of each IRSU award granted was determined at the end of the year primarily based on the 2011 performance of Ally
relative to Company objectives and accomplishments and the Committee's judgment of how each NEO performed relative to his or her individual goals and
objectives, including adherence to standards set by Ally's risk, audit, model validation, loan review and compliance functions, and the limitation established
under TARP that incentive compensation cannot exceed one−third of total compensation and cannot be earned above 100% to reflect overachievement of
any goals and objectives. In its determination process, the Committee did not employ any formula or quantitative adjustment methodology, but relied
instead on its overall assessment of the individual's performance against stated goals and objectives and its subjective judgment regarding the individual's
contribution to the Company's annual performance. Forms of compensation other than IRSUs were not impacted by these reviews since they were set at the
permitted levels in accordance with the applicable TARP restrictions on executive compensation.
The significant 2011 performance objectives and accomplishments for Ally are discussed in the CEO Compensation section below. Each NEO was
responsible for various contributions to achieve these enterprise−wide objectives. Below is a listing of the overall responsibilities of each NEO, along with
the NEO's significant individual 2011 performance objectives and applicable 2011 accomplishments. In addition to the performance objectives and
accomplishments listed below, in determining the incentive compensation amounts for the NEOs, the Committee also considered the overall financial
performance of Ally for 2011.
CEO Compensation
Michael A. Carpenter — Chief Executive Officer of Ally since November 2009 and a member of the Ally Board of Directors since May 2009. Mr.
Carpenter oversees all Ally strategy and operations to focus on strengthening the core businesses, while positioning the Company for long−term growth.
The 2011 performance objectives and accomplishments for Mr. Carpenter are included in the table below. In making the incentive compensation award
determination for Mr. Carpenter, the Committee considered the performance objectives and accomplishments of Ally.
2011 Performance Objectives 2011 Accomplishments
Capitalize on opportunities in the auto finance business Continued profitability in the Global Automotive Services business
Ally ranked as the number one overall auto lender in the United States by
Experian Automotive
Increased consumer auto financing originations for new and used vehicles
Named the recommended provider of financing products and services for
Vehicle Production Group, Baojun, and SsangYong
Expanded Ally Buyer's Choice, a unique consumer financing product
launched in October, to a total of 47 states to date
Continue to build Ally Bank with a strong consumer value proposition and
expanded product offerings Achieved strong deposit growth and high CD retention rates at Ally Bank
Introduced new Investment Retirement Accounts, Ally Perks and eCheck
remote deposit products at Ally Bank
Demonstrate commitment to home ownership preservation Completed more than 765,000 default workouts for borrowers since 2008
Maintain a strong capital and liquidity profile Completed new funding transactions totaling $38 billion during the year
Improved cost of funds in 2011, as compared to 2010
Position Ally to repay the United States Department of Treasury as soon as
practical The United States Treasury sold $2.7 billion of Trust Preferred Securities to third−party investors
To date, Ally Financial has paid $5.4 billion to the United States Treasury
including preferred dividends
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