Ameriprise 2009 Annual Report Download - page 142

The fair value of restricted stock awards vested during the years ended December 31, 2009, 2008 and 2007 was $27 million, $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.
As of December 31, 2009, there were approximately 1.3 million units outstanding of restricted stock units, including deferred share units,
of which approximately 0.9 million units were fully vested.
Amended Deferred Equity Program for Independent Financial Advisors
The P2 Deferral Plan, which was amended in April 2008, gives certain advisors the choice to defer a portion of their commissions in the
form of share-based awards, which are subject to forfeiture based on future service requirements. The Company provides a match on the
advisor deferrals, which participants can elect to receive in cash or shares of common stock. The P2 Deferral Plan allows for the grant of
share-based awards of up to 8.5 million shares of common stock.
The number of units awarded is based on the performance measures, deferral percentage and the market value of Ameriprise Financial
common stock on the deferral date as defined by the plan. As independent financial advisors are not employees of the Company, the
awards are expensed based on the stock price of the Company’s common stock up to the vesting date. The share-based awards generally
vest ratably over four years, beginning on January 1 of the year following the plan year in which the award was made. The P2 Deferral Plan
allows for accelerated vesting of the share-based awards based on age and years as an advisor. Commission expense is recognized on a
straight-line basis over the vesting period. For the years ended December 31, 2009, 2008 and 2007, expense related to units awarded
under the P2 Deferral Plan was $60 million, $44 million, and $52 million, respectively.
As of December 31, 2009, there were approximately 5.5 million units outstanding under the P2 Deferral Plan, of which approximately
3.9 million were fully vested.
Ameriprise Advisor Group Deferred Compensation Plan
The P1 Plan, which was created in April 2009, allows for employee advisors to receive share-based bonus awards which are subject to
future service requirements and forfeitures. The P1 Plan also gives qualifying employee advisors the choice to defer a portion of their
cash-based compensation beginning in 2010. This deferral can be in the form of share-based awards or other investment options.
Deferrals are not subject to future service requirements or forfeitures. Under the P1 Plan, a maximum of 3.0 million shares may be issued.
Awards granted under the P1 Plan may be settled in cash and/or shares of the Company’s common stock according to the award’s terms.
As of December 31, 2009, there were approximately 0.1 million units outstanding under the P1 Plan, of which none were fully vested.
17. Regulatory Requirements
Restrictions on the transfer of funds exist under regulatory requirements applicable to certain of the Company’s subsidiaries. At
December 31, 2009, the aggregate amount of unrestricted net assets was approximately $1.9 billion.
The National Association of Insurance Commissioners (‘‘NAIC’’) defines Risk-Based Capital (‘‘RBC’’) requirements for insurance
companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory
actions designed to protect policyholders. These requirements apply to both the Company’s life and property casualty insurance
companies. In addition, IDS Property Casualty is subject to the statutory surplus requirements of the State of Wisconsin. The Company’s
life and property casualty companies each met their respective minimum RBC requirements.
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