What is the primary focus of Ameriprise's 2006 executive incentive plan?

The primary focus is on aligning executive compensation with key financial performance indicators. Specifically, 50% of the target bonus is tied to achieving Adjusted Diluted Earnings Per Share (Adjusted EPS) targets, and 25% is linked to Adjusted Return on Equity (Adjusted ROE) targets for 2006.

How will 'Adjusted EPS' and 'Adjusted ROE' be calculated?

These metrics will be calculated by adjusting the company's reported net income to exclude income and losses from discontinued operations, the cumulative effect of accounting changes, the operations of AMEX Assurance, and non-recurring separation costs. The Compensation Committee also reserves the right to make other adjustments to appropriately reflect the company's 2006 operating performance.

Are there any other factors that can influence executive bonuses?

Yes, 25% of the target bonus is based on individual business unit or functional goals. Furthermore, the Compensation Committee can adjust the total earned bonus by up to 30% based on factors like the company's relative total shareholder return and an officer's individual contributions and leadership.

When can executive officers expect to receive their 2006 incentive awards?

Payments for the 2006 annual incentive awards are expected to be made in February 2007. To be eligible for payment, an executive officer generally must be continuously employed by the company through the payment date.

AMP 8-K: Material Agreements

Summary

This Form 8-K filing from Ameriprise Financial, Inc. (AMP) dated March 26, 2006, details the establishment of performance goals and business criteria for executive incentive compensation for the 2006 award period. The Compensation and Benefits Committee has outlined a plan where annual incentive awards for executive officers will be primarily based on the company's Adjusted Diluted Earnings Per Share (Adjusted EPS) and Adjusted Return on Equity (Adjusted ROE). A portion of the bonus is also tied to individual business unit or functional goals. This structure aims to align executive compensation with key financial performance indicators and strategic objectives for the upcoming year.

Key Highlights

1Ameriprise Financial established performance goals for its 2006 executive incentive compensation plan on March 21, 2006.
2Executive bonuses are primarily linked to Adjusted Diluted Earnings Per Share (Adjusted EPS) and Adjusted Return on Equity (Adjusted ROE) targets.
350% of the target bonus is based on Adjusted EPS achievement, 25% on Adjusted ROE, and 25% on individual business unit or functional goals.
4Adjustments to net income for calculating Adjusted EPS and Adjusted ROE will exclude discontinued operations, accounting changes, AMEX Assurance operations, and non-recurring separation costs.
5The Compensation Committee retains authority to make further adjustments to performance metrics to reflect operating performance.
6Total bonuses can be adjusted upward or downward by up to 30% based on relative shareholder return and individual officer contributions, with CEO recommendations for non-CEO officers.
7Payouts for 2006 awards are expected in February 2007, contingent upon continued employment through the payment date, with potential payouts ranging from 0% to 200% of the target bonus.

AMERIPRISE FINANCIAL INC 8-K Report, Material Agreement (Mar 27, 2006)

Summary

Key Highlights

Frequently Asked Questions