Voya 2014 Annual Report Download - page 336

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
LSPP awards provided to the Company’s employees in 2012 remain outstanding and will continue to vest
according to the terms of their original grant. One-third of these awards vested or will vest, and the underlying
ING Group ADRs have been or will be delivered, on each of the first, second and third anniversaries of the
award date, provided that the participants were or are still employed by the Company on the relevant vesting
date, and, in the case of performance-based LSPP awards, provided that the relevant performance conditions
have been satisfied, as determined by the Committee and the Supervisory Board of ING Group.
Equity Compensation Plan: In 2012 and 2013, certain employees of the Company (principally those employed
within the Investment Management business) received equity-based awards under ING America Insurance
Holdings, Inc. Equity Compensation Plan (the “Equity Compensation Plan”). Awards made under the Equity
Compensation Plan are settled in the form of ING Group ADRs.
Equity Compensation Plan awards to employees of the Company provided in 2013 were, upon the closing of the
IPO, converted into Company-based equity awards under the 2013 Omnibus Plan. These awards are subject to a
three-year vesting period provided that the participant is still employed by the Company on the relevant vesting
date.
Equity Compensation Plan awards provided to the Company’s employees in 2012 remain outstanding and are
subject to a three-year vesting period, provided that the participant is still employed by the Company on the
relevant vesting date.
Compensation Cost
The Company measures the cost of the share-based awards at their grant date fair value, based upon the market
value of the stock, and recognizes that cost over the vesting period. Differences in actual versus expected
experience or changes in expected forfeitures are recognized in the period of change. Compensation expense is
principally related to the granting of PSUs, RSUs and stock options and is recognized in Operating expenses in
the Consolidated Statements of Operations.
The liability related to the awards made under the Phantom Plan is recorded within Other liabilities on the
Consolidated Balance Sheets. Unlike equity-settled awards, which have a fixed grant-date fair value, the fair
value of unvested cash-settled awards is remeasured at the end of each reporting period until the awards vest.
As a result of the reduction of ING Group’s ownership in Voya Financial, Inc. to approximately 43% on
March 25, 2014, those ING Group equity awards that were not converted to equity awards of Voya Financial,
Inc. are no longer deemed to be granted to employees of ING Group. Therefore, beginning on March 25, 2014,
the compensation cost is remeasured at each reporting date until the awards vest. The remeasured cost is
recognized prospectively on a pro-rata basis equal to the proportion of service provided by the award recipients
as nonemployees to the total requisite service period of the award. The corresponding amount for the 2012 ING
Group LSPP awards, which are settled through the issuance of new ING Group equity securities, is recorded as a
capital contribution. The corresponding amount for the 2012 Equity Compensation Plan awards, which are
settled through the delivery of ING Group ADRs acquired by the Company in the secondary market, is recorded
as a liability. The impact of the remeasurement of the compensation cost of these awards for the year ended,
December 31, 2014 was immaterial.
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