Ameriprise 2013 Annual Report Download - page 173

employees are expensed on a straight-line basis over the vesting period or on an accelerated basis if certain age and
length of service requirements are met. Deferred share units granted to non-employee directors are expensed immediately.
Dividends are paid on restricted stock units, as declared by the Company’s Board of Directors, during the vesting period
and are not subject to forfeiture. Dividend equivalents are issued on deferred share units, as dividends are declared by the
Company’s Board of Directors, until distribution and are not subject to forfeiture.
Ameriprise Financial Deferred Compensation Plan
The Ameriprise Financial Deferred Compensation Plan (‘‘DCP’’) under the 2005 ICP gives certain employees the choice to
defer a portion of their eligible compensation, which can be invested in investment options as provided by the DCP,
including the Ameriprise Financial Stock Fund. The DCP is an unfunded non-qualified deferred compensation plan under
section 409A of the Internal Revenue Code. The Company provides a match on certain deferrals of restricted stock units.
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
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. Dividend equivalents are issued on deferrals into the
Ameriprise Financial Stock Fund and the Company match. Dividend equivalents related to deferrals are not subject to
forfeiture, whereas dividend equivalents related to the Company match are subject to forfeiture until fully vested.
Ameriprise Financial Franchise Advisor Deferral 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 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. Share units receive dividend equivalents, as dividends are declared by the
Company’s Board of Directors, until distribution and are subject to forfeiture until 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. 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 shares may be issued.
Awards granted under the Advisor Group Deferral Plan may be settled in cash and/or shares of the Company’s common
stock according to the award’s terms. Share units receive dividend equivalents, as dividends are declared by the
Company’s Board of Directors, until distribution and are subject to forfeiture until vested.
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