Ameriprise 2008 Annual Report Download - page 139

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based on the U.S. Treasury yield curve at the grant date. The expected life of the option is based on experience while the
Company was a part of American Express and subsequent experience after the Distribution.
The weighted average grant date fair value for options granted during 2008, 2007 and 2006 was $14.00, $13.69 and
$12.08, respectively.
A summary of the Company’s stock option activity for 2008 is presented below (shares and intrinsic value in millions):
Weighted Average
Remaining
Weighted Average Contractual Term Aggregate Intrinsic
Shares Exercise Price (Years) Value
Outstanding at January 1 13.2 $ 38.62 7.5 $ 217
Granted 2.6 51.20 — —
Exercised (0.3) 33.46 — —
Forfeited (0.4) 38.04 — —
Outstanding at December 31 15.1 $ 40.79 7.0 $ 2
Exercisable at December 31 8.5 $ 35.66 6.2 $ 2
The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of
the option. The total intrinsic value of options exercised was $5 million, $43 million and $16 million during the years ended
December 31, 2008, 2007 and 2006, respectively.
Restricted Stock Awards
Restricted stock awards generally vest ratably over three to four years or at the end of five years. Vesting of restricted stock
awards may be accelerated based on age and length of service. Compensation expense for restricted stock awards is based
on the market price of Ameriprise Financial stock on the date of grant and is amortized on a straight-line basis over the vesting
period. Quarterly dividends are paid on restricted stock, as declared by the Company’s Board of Directors, during the vesting
period and are not subject to forfeiture.
Certain advisors receive a portion of their compensation in the form of restricted stock awards which are subject to forfeiture
based on future service requirements. The Company provides a match of these restricted stock awards equal to one half of the
restricted stock awards earned for 2006 and one quarter for 2007 and 2008.
A summary of the Company’s restricted stock award activity for 2008 is presented below (shares in millions):
Weighted Average
Shares Exercise Price
Non-vested shares at January 1 3.3 $ 44.49
Granted 1.1 49.83
Vested (1.2) 41.16
Forfeited (0.3) 47.20
Non-vested shares at December 31 2.9 $ 48.19
The fair value of restricted stock vested during the years ended December 31, 2008 and 2007 was $59 million and
$75 million, respectively.
Restricted Stock Units
The 2005 ICP provides for the grant of deferred share units to non-employee directors of the Company and restricted stock
units to employees. The director awards are fully vested upon issuance. The deferred share units are settled for Ameriprise
Financial common stock upon the director’s termination of service. The employee awards generally vest ratably over three to
four years. Compensation expense for deferred share units and restricted stock units is based on the market price of
Ameriprise Financial stock on the date of grant. Restricted stock units granted to employees are amortized on a straight-line
basis over the vesting period or accelerated basis due to retirement eligibility. Deferred share units granted to non-employee
directors are expensed immediately. Restricted stock units include units awarded under the DCP.
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