MINNEAPOLIS – May 4, 2010 – Ameriprise Financial, Inc. (NYSE: AMP) today announced the grant of long-term incentive awards to former employees of Columbia Management and its affiliates who became employees of Ameriprise Financial in connection with the acquisition of the long-term asset management business of Columbia Management.
The Compensation and Benefits Committee (CBC) of the Ameriprise Financial Board of Directors approved the program under which these long-term incentive awards were granted. The committee is composed solely of independent directors. The CBC’s approval was given based on the employment inducement exemption provided under the corporate governance listing standards of the New York Stock Exchange (NYSE). This news release is being issued per applicable NYSE guidance.
The CBC approved the long-term incentive awards on April 28, 2010. Under the company's established long-term incentive award grant practices and procedures, the grant date for these awards was May 3, 2010. A total of 133 employees that joined the company as part of this transaction received long-term incentive awards. If all eligible employees accept the awards, the aggregate number of shares of the company's common stock will be awarded as follows: 406,126 shares underlying non-qualified stock options, 124,454 shares of restricted stock and 29,184 shares of restricted stock units.
The non-qualified stock options awarded have an exercise price equal to the closing price of a share of the company's stock on the NYSE on May 3, 2010, which was $47.50. The options will vest in four equal annual installments commencing on the first anniversary of the date of grant and will have a 10-year term. The options may be forfeited under certain circumstances, including termination of employment.
The restricted stock or restricted stock units awarded will vest in four equal annual installments commencing on the first anniversary of the date of grant. During the restricted period, the restricted stock will have both dividend and voting rights and restricted stock units will be eligible for dividend payments but not voting rights. The restricted stock or restricted stock units may be forfeited under certain circumstances, including termination of employment.
All of these long-term incentive awards were approved as part of an employment inducement award program for the former employees of an acquired business. None of the awards was specifically negotiated by or approved for an individual employee outside of this established program. No employee receiving an award became an executive officer of the company.
Ameriprise Financial, Inc. is a diversified financial services company serving the comprehensive financial planning needs of the mass affluent and affluent. For more information, visit ameriprise.com.
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