Summary
Ameriprise Financial, Inc. (AMP) has announced a significant change in its executive compensation policy, effective January 1, 2009. The company will cease the practice of paying or reimbursing executive officers and outside directors for taxes owed on certain perquisites and personal benefits. This policy adjustment is being made in alignment with SEC rules. However, the company will continue to provide tax reimbursements for relocation expenses for executive officers and other employees, as outlined in existing company relocation programs. This update, filed under Regulation FD, provides transparency to investors regarding executive compensation practices and potential cost savings for the company.
Key Highlights
- 1Ameriprise Financial will no longer pay or reimburse executives and directors for taxes on most perquisites and personal benefits, effective January 1, 2009.
- 2This policy change is intended to align with SEC rules.
- 3The company will continue to reimburse taxes related to relocation expenses for employees, in accordance with existing programs.
- 4The policy change was disclosed on March 30, 2009, and is effective retroactively for 2009.
- 5This action may indicate a focus on cost control or a response to prevailing corporate governance trends.
Frequently Asked Questions
Ameriprise Financial is discontinuing its policy of paying or reimbursing executive officers and outside directors for taxes on certain perquisites and personal benefits, effective January 1, 2009.
Yes, the company will continue to pay or reimburse taxes related to relocation expenses for executive officers and other employees, as provided under the applicable company relocation program.
The company states that this change is to ensure its practices are consistent with the rules of the United States Securities and Exchange Commission (SEC). It may also reflect a broader trend in corporate governance or a focus on managing executive compensation costs.
The policy change is effective as of January 1, 2009, meaning the company will not reimburse for these taxes for the current year, except for the specified relocation expenses.