Ameriprise 2009 Annual Report Download - page 140

The components of the Company’s share-based compensation expense, net of forfeitures, were as follows:
Years Ended December 31,
2009 2008 2007
(in millions)
Stock options $ 53 $ 40 $ 37
Restricted stock awards 59 57 52
Restricted stock units 70 51 54
Total $ 182 $ 148 $ 143
For the years ended December 31, 2009, 2008 and 2007, the total income tax benefit recognized by the Company related to the share-
based compensation expense was $64 million, $52 million and $50 million, respectively.
As of December 31, 2009, there was $158 million of total unrecognized compensation cost related to non-vested awards under the
Company’s share-based compensation plans. That cost is expected to be recognized over a weighted-average period of 2.5 years.
Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan
The 2005 ICP, which was amended and approved by shareholders on April 25, 2007, provides for the grant of cash and equity incentive
awards to directors, employees and independent contractors, including stock options, restricted stock awards, restricted stock units,
stock appreciation rights, performance shares and similar awards designed to comply with the applicable federal regulations and laws of
jurisdiction. Under the 2005 ICP, a maximum of 37.9 million shares may be issued. Of this total, no more than 4.4 million shares may be
issued after April 25, 2007 for full value awards, which are awards other than stock options and stock appreciation rights. Shares issued
under the 2005 ICP may be authorized and unissued shares or treasury shares.
Deferred Compensation Plan
The Deferred Compensation Plan (‘‘DCP’’) gives certain employees the choice to defer a portion of their bonus, which can be invested in
investment options as provided by the DCP, including the Ameriprise Financial Stock Fund. The Company provides a match if the
participant deferrals are invested in the Ameriprise Financial Stock Fund. Participant deferrals vest immediately and the Company match
vests after three years. Distributions are made in shares of the Company’s common stock for the portion of the deferral invested in the
Ameriprise Financial Stock Fund and the related Company match, for which the Company has recorded in equity. The DCP does allow for
accelerated vesting of the share-based awards in cases of death, disability and qualified retirement. Compensation expense related to the
Company match is recognized on a straight-line basis over the vesting period.
Ameriprise Financial 2008 Employment Incentive Equity Award Plan
The 2008 Plan is designed to align new employees’ interests with those of the shareholders of the Company and attract and retain new
employees. The 2008 Plan provides for the grant of equity incentive awards to new employees who became employees in connection with
a merger or acquisition, including stock options, restricted stock awards, restricted stock units, and other equity-based awards designed
to comply with the applicable federal and foreign regulations and laws of jurisdiction. Under the 2008 Plan, a maximum of 6.0 million
shares may be issued. Awards granted under the 2008 Plan may be settled in cash and/or shares of the Company’s common stock
according to the award’s terms.
Stock Options
Stock options granted have an exercise price not less than 100% of the current fair market value of a share of the Company’s common
stock on the grant date and a maximum term of 10 years. Stock options granted generally vest ratably over three to four years. Vesting of
option awards may be accelerated based on age and length of service. Stock options granted are expensed on a straight-line basis over the
option vesting period based on the estimated fair value of the awards on the date of grant using a Black-Scholes option-pricing model.
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