Ameriprise Cuts CEO Pay 15% to $20.7 Million After Stock Slumpby and
Asset manager's stock suffered worst year since 2008
Results listed as `solid' compared with `excellent' in 2014
Ameriprise Financial Inc. reduced Chief Executive Officer Jim Cracchiolo’s pay package 15 percent for 2015 as the company’s stock suffered its worst year since the financial crisis.
The CEO’s total compensation was cut to $20.7 million from $24.5 million, driven by a decrease in non-equity incentive plan compensation, the Minneapolis-based firm said Friday in a regulatory filing. Awards were also lowered for Chief Financial Officer Walter Berman, Global Chief Investment Officer Colin Moore and William Truscott, the CEO of global asset management.
Asset managers have come under pressure as some clients withdrew funds, and volatile market swings hurt investment results. Ameriprise faced outflows at its Acorn Fund over the past year, and the company also exited a travel insurance venture in 2015 after it failed to meet profitability targets.
“Total direct compensation for each of our named executive officers was lower in 2015 based on company performance,” Ameriprise said in the filing, which labeled 2015’s results as “solid” compared with the description of “excellent” in the comparable document a year earlier.
Ameriprise slumped 20 percent in New York trading in 2015, the worst drop since 2008. The stock had more than doubled in value in the three years through 2014.