DEF: Ameriprise Financial Reports Record Financial Performance, Announces Board Changes in Proxy Statement

Ameriprise Financial's 2025 proxy statement highlights record financial performance in 2024 and the election of eight director nominees.

Summary

• Ameriprise Financial achieved record financial and strong business results in 2024, building on its 130-year legacy.
• The company delivered significant shareholder value through prudent management, sound governance, and strong board engagement.
• Key proposals for the 2025 Annual Meeting of Shareholders include the election of eight director nominees, approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm.
• The Annual Meeting will be held virtually on April 30, 2025, at 11:00 a.m. Central time.
• Ameriprise Financial delivered record financial performance and strong business results in 2024.
• The company drove profitable growth with its diversified business, generated significant free cash flow, and demonstrated balance sheet strength and effective risk management.
• Ameriprise Financial was ranked No. 1 in total shareholder return within the S&P 500 Financials Index since its spin-off in 2005.
• The company's directors have an average tenure of approximately nine years and a median tenure of approximately eight years.
• The Board of Directors recommends a vote FOR the election of each of the eight director nominees.
• The Board of Directors recommends a vote FOR the approval of the compensation of the named executive officers.
• The Board of Directors recommends a vote FOR the ratification of the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm.

Sentiment

Score: 9

Explanation: The document expresses a highly positive sentiment due to the record financial performance, strong business results, and superior shareholder returns. The company's leadership, governance, and employee engagement are also highlighted positively.

Positives

• Ameriprise Financial delivered record financial performance and strong business results in 2024.
• The company drove profitable growth with its diversified business, generated significant free cash flow, and demonstrated balance sheet strength and effective risk management.
• Ameriprise Financial was ranked No. 1 in total shareholder return within the S&P 500 Financials Index since its spin-off in 2005.
• The company has a highly skilled and engaged Board of Directors.
• The company employs sound corporate governance policies.
• The company maintains year-round dialogue with shareholders.
• The company has a successful executive compensation strategy and approach that is balanced, thoughtful, and aligned to shareholder and client results.
• The company has a performance-based pay structure aligned to the best interests of shareholders and clients.
• The company has a strong and experienced leadership team.

Risks

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
• The company's business is subject to a number of risks and uncertainties.

Future Outlook

Management undertakes no obligation to update publicly or revise any forward-looking statements.

Management Comments

• James M. Cracchiolo, Chairman and CEO: 'We work diligently to uphold our reputation for serving clients exceptionally well, driving growth and continuous innovation with our values to guide us.'
• James M. Cracchiolo, Chairman and CEO: 'In 2024, we built on our legacy of outperformance by delivering record financial and strong business results and generating significant shareholder value.'

Industry Context

Ameriprise Financial operates in the financial services industry, competing with other firms for executive talent and board members. The company's compensation and governance practices are benchmarked against a peer group of similar companies.

Comparison to Industry Standards

• Ameriprise Financial's executive compensation is benchmarked against a peer group including BlackRock, Charles Schwab, Morgan Stanley, and Prudential Financial.
• The company's No. 1 total shareholder return in the S&P 500 Financials Index since its spin-off in 2005 demonstrates superior performance compared to its peers.
• The average CEO tenure at S&P 500 companies is 7 years, while Ameriprise's CEO has led the company for 20 years since the spin-off.
• Employee engagement at Ameriprise is strong at 84% favorable, outperforming financial services and general industry benchmarks.

Management Changes

Related Party Transactions

• The company has transactions with BlackRock, Inc. and Vanguard Group, Inc., which are significant shareholders, in the ordinary course of its Advice & Wealth Management and Asset Management businesses.

Stakeholder Impact

• Shareholders benefit from the company's strong financial performance and shareholder returns.
• Clients benefit from the company's focus on providing exceptional service and advice.
• Employees benefit from the company's strong employee engagement and recognition as an employer of choice.
• Advisors benefit from the company's investments in technology and support for their practices.
• Communities benefit from the company's philanthropic priorities and support for local organizations.

Next Steps

• Shareholders are encouraged to vote on the proposals outlined in the proxy statement.
• The Board of Directors will review the results of the vote on executive compensation and take action as deemed appropriate.
• The company will continue to engage with shareholders on governance and compensation-related matters.

Key Dates

Keywords

shareholder value, corporate governance, executive compensation, financial performance, board of directors, proxy statement, Ameriprise Financial