Ameriprise 2015 Annual Report Download - page 173

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 Ameriprise Financial stock 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.
Full Value Share Award Activity
A summary of activity for the Company’s restricted stock awards, restricted stock units granted to employees (including
advisors), compensation deferrals into stock and deferred share units for 2015 is presented below (shares in millions):
Weighted Average
Shares Grant-date Fair Value
Non-vested shares at January 1 1.4 $ 80.68
Granted 0.6 129.07
Deferred 0.3 121.17
Vested (1.0) 95.76
Forfeited — 101.84
Non-vested shares at December 31 1.3 103.01
The deferred shares in the table above primarily relate to franchise advisor voluntary deferrals of their commissions into
Ameriprise Financial stock under the Franchise Advisor Deferral Plan that are fully vested at the deferral date.
The fair value of full value share awards vested during the years ended December 31, 2015, 2014 and 2013 was
$133 million, $259 million and $120 million, respectively.
The weighted average grant date fair value for restricted shares, restricted stock units and deferred share units during
2015, 2014 and 2013 was $128.43, $109.60 and $68.90, respectively. The weighted average grant date fair value for
franchise advisor and advisor group deferrals during 2015, 2014 and 2013 was $123.88, $114.69 and $80.77,
respectively.
Performance Share Units
Under the 2005 ICP, the Company’s Executive Leadership Team may be awarded a target number of performance share
units (‘‘PSUs’’). PSUs will be earned only to the extent that the Company attains certain goals relating to the Company’s
performance and relative total shareholder returns against peers over a three-year period. The awards also have a
three-year service condition with cliff vesting with an accelerated service condition based on age and length of service. The
actual number of PSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of
the target, if performance goals are significantly exceeded. The value of each target PSU is equal to the value of one share
of Ameriprise common stock. The total amount of target PSUs outstanding at the end of December 31, 2015, 2014 and
2013 was 0.2 million, 0.2 million, 0.3 million, respectively. The PSUs are liability awards. During the years ended
December 31, 2015 and 2014, the value of shares settled for PSU awards was $27 million and $20 million, respectively.
There were no settlements made for PSU awards for the years ended December 31, 2013.
Threadneedle Equity Incentive Plan
Prior to 2012, certain key Threadneedle employees were eligible for awards under the EIP based on a formula tied to
Threadneedle’s financial performance. Awards under the EIP were first made in April 2009; prior awards were made under
the equity participation plan (‘‘EPP’’). In 2011, Threadneedle’s articles of incorporation were amended to create a new
class of Threadneedle corporate units to be granted under a modified EIP plan. Employees who held EIP units granted prior
to 2011 were given the choice to exchange their existing units at the exchange date. EIP awards may be settled in cash or
Threadneedle corporate units according to the award’s terms. For awards granted prior to 2011, the EIP provides for 100%
vesting after three years, with a mandatory call after six years. For converted units and awards granted after February
2011, the EIP provides for 100% vesting after two and a half years, with no mandatory call date. Converted units and
units granted after February 2011 have dividend rights once fully vested. The EPP provides for 50% vesting after three
years and 50% vesting after four years, with required cash-out after five years. EIP and EPP awards are subject to
forfeitures based on future service requirements. The EIP awards were no longer awarded after 2012 and instead
Threadneedle employees received awards under the 2005 ICP.
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