CEO Pay Watch: Ameriprise’s James Cracciolo made $60.6 million last year
James Cracchiolo Ameriprise Financial Inc.
Total compensation: $60,615,425 for the year ended Dec. 31, 2017
Non-equity incentive pay: $11,190,000
Other compensation: $830,422
Exercised stock options: $40,799,232
Value realized on vesting shares: $6,770,771
New stock options: 108,334
Total 2017 shareholder return: 56.0 percent
CEO Pay Ratio: 223:1
Median employee pay: $107,082
Note: Stock option gains have fueled the pay of Cracchiolo for years. This year his $41 million realized from previously issued stock options fueled a 300 percent increase in his compensation after not exercising any options in 2016.
Strong financial performance also lead to Cracchiolos $11.2 million cash incentive bonus, the first increase since 2014. The cash incentive bonus is based on mix of financial and strategic measures. The company earned the maximum score on financial goals as revenue, earnings, return on equity and balance sheet performance were all well above targeted levels. Strategic measures account for 30 percent of the annual bonus, and Ameriprise largely exceeded those goals as well.
Total assets under management for Ameriprise also hit a record in 2017 on strong asset flows from clients and the strong stock market appreciation.
Shareholders enjoyed a good year as the stock had a total return of 56 percent. And since Ameriprise became a public company in 2005 the stock has had a total return of 504 percent, one of the best returns from a financial services firm in that time period.
Shareholder support for its executive compensation plan dipped last year as the nonbinding advisory vote on executive compensation earned an 81.1 percent approval rate for 2016s compensation year. The vote was supportive of the compensation plan but the compensation committee did make changes to the design by moving some total compensation from cash to performance-based equity awards.
Calculation of the CEO pay ratio and compensation of the median employee revealed that Ameriprise has employees in 19 different countries. The median compensation was from the companys 13,200 employees. For purposes of the calculation, the company included financial advisers employed by Ameriprise but not the 7,700 franchise financial advisers.