AMERIPRISE FINANCIAL INC
For the period ended Apr 30, 2025. Filed Mar 21, 2025.
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Apr 30, 2025 · Filed Mar 21, 2025
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PSU Program
PSU Program
The PSU program is a three-year, cliff-vested, compensation program that incentivizes senior leadership to achieve sustained levels of strong financial results, which are directly aligned to the long-term wealth creation of our clients and shareholders. Performance goals are set at the beginning of each three-year period for average return on equity and the earnings per share compound annual growth rate. PSU awards granted in January 2024 (to be paid in February 2027) used the same metrics, leverage, weighting and modifier structure as the 2022-2024 PSU awards with new performance goals set for the period.
2022-2024 PSU Award Earnout (Granted Jan. 2022)
The table below includes the return on equity and earnings per share goals and how they correlate to target and maximum award payouts. Results in between those points are interpolated. Actual performance resulted in the awards being earned at 150% of target before application of the total shareholder return modifier.
| | Award Leverage | | | Average Return on Equity | | | Earnings Per Share Compound Annual Growth Rate | |
|---|---|---|---|---|---|---|---|---|
| | 2022-2024 Actual (excluding Unlocking) | | | 49.7% | | | 15.9% | |
| | Maximum (150%) | | | 47.5% or above | | | 13.0% or above | |
| | Target (100%) | | | 45.5% | | | 9.0% | |
| | Performance Rating (pre-TSR modifier) | | | 150% | | | 150% | |
The PSU Awards granted in January 2022 (paid in February 2025) have a payout of 150% of target based on return on equity and earnings per share performance, with a total shareholder return modifier of up to 25 percentage points. The total shareholder return modifier will either increase or decrease the leverage for a total maximum payout of 175% of target, if achieved. For each percentile Ameriprise is above or below median of the TSR of the S&P 500 Financials, the leverage is increased or decreased by 1 percentage point, with an impact of no more than 25 percentage points. Ameriprise’s total shareholder return performance for the 2022-2024 period ranked 4 out of 60 firms in the S&P 500 Financials index 1 or 43 percentage points above median, resulting in +25% TSR adjustment and a total payout of 175%.
Similar to our incentive awards, in evaluating the performance goals at the end of each period, the Compensation and Benefits Committee may positively or negatively adjust for certain approved predefined factors that were unknown or uncontrollable at the time goals were set, including changes in accounting principles, and for equity market performance and interest rates that are outside of pre-established ranges. For the 2022-2024 period, the Committee adjusted for equity market performance and interest rates outside of pre-established ranges as well as severance and severance program related expenses related to the Company’s business transformation initiatives to improve operational efficiency and effectiveness in 2024. In addition, targets were adjusted for impacts related to the restatement of the Company’s financial statements due to the new required Long-Duration Targeted Improvements (“LDTI”) accounting standard, effective January 1, 2023.
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Source: Bloomberg – 12/31/2020 to 12/31/2024
60 | Ameriprise Financial 2025 Proxy Statement
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.