Ameriprise 2012 Annual Report Download - page 169

A summary of the Company’s restricted stock award activity for 2012 is presented below (shares in millions):
Weighted Average
Shares Grant-date Fair Value
Non-vested shares at January 1 2.9 $ 32.33
Granted 0.4 54.28
Vested (0.8) 35.92
Forfeited (0.2) 34.18
Non-vested shares at December 31 2.3 35.07
The fair value of restricted stock awards vested during the years ended December 31, 2012, 2011 and 2010 was
$37 million, $54 million and $42 million, respectively.
Restricted Stock Units and Deferred Share 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 on an 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, 2012, there were approximately 1.5 million units outstanding of restricted stock units, including
deferred share units, of which approximately 1.2 million units were fully vested.
Ameriprise Financial Franchise Advisor Deferred Compensation Plan
The Franchise Advisor Deferral Plan, which was amended in January 2011, gives certain advisors the choice to defer a
portion of their commissions into share-based awards or other investment options. The Franchise Advisor Deferral Plan is
an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. Prior to 2011,
all deferrals were in the form of share-based awards and the Company provided a match on the advisor deferrals, which
participants could elect to receive in cash or shares of common stock. The Company provided a 15% stock match for
2010 on eligible deferrals.
The Franchise Advisor Deferral Plan allows for the grant of share-based awards of up to 10.5 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. Share-based awards made during 2011
and later are fully vested and are not subject to forfeitures. Share-based awards made prior to 2011 generally vest ratably
over four years, beginning on January 1 of the year following the plan year in which the award was made. In addition to
the voluntary deferral, certain advisors are eligible for the Franchise Advisor Top Performer Stock Award or the Franchise
Consultant Growth Bonus. The Franchise Advisor Top Performer Stock Award allows eligible advisors to earn additional
deferred stock awards on commissions over a specified threshold. The awards vest ratably over four years. The Franchise
Consultant Growth Bonus allows eligible advisors who coach other advisors the ability to earn a bonus based on the
success of the advisors they coach, which can be deferred into the plan. The awards vest ratably over three years. The
Franchise Advisor 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. However, as franchise advisors
are not employees of the Company, the expense is adjusted each period based on the stock price of the Company’s
common stock up to the vesting date. For the years ended December 31, 2012, 2011 and 2010, expense related to
share-based units awarded under the Franchise Advisor Deferral Plan was $39 million, $38 million and $70 million,
respectively.
As of December 31, 2012, there were approximately 4.3 million units outstanding under the Franchise Advisor Deferral
Plan, of which approximately 3.9 million were fully vested.
Ameriprise Advisor Group Deferred Compensation Plan
The Advisor Group Deferral 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 Advisor Group Deferral Plan is an
unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Advisor Group
Deferral Plan also gives qualifying employee advisors the choice to defer a portion of their base salary or commissions
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 Advisor Group Deferral Plan, a maximum of 3.0 million
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