This excerpt taken from the AMP DEF 14A filed Mar 21, 2006.
What factors does the committee use to evaluate the chief executive officers performance and make decisions about his compensation?
The Board of Directors conducted a full evaluation of the chief executive officers performance for 2005. As part of an established chief executive officer evaluation process, each director was sent information on 2005 performance as measured by shareholder, customer, and employee metrics, and a summary of spin-off activities and other as major initiatives accomplished in 2005. Their feedback on chief executive officer performance was collected and then discussed in an executive session held by the Board on January 26, 2006. Key accomplishments that were considered by the Board in assessing 2005 performance included:
· When measured on the shareholder goals established for 2005, normalizing for non-recurring separation costs and the ongoing impacts of the separation from American Express Company, Ameriprise achieved revenue growth and earnings growth in line with its long-range financial targets.
· Ameriprise showed year-over-year improvement in nearly all of its key customer metrics for 2005 and strong results again in its annual employee satisfaction survey.
· The spin-off from American Express Company was successfully completed with minimal disruption to the business, and many key strategic initiatives for 2005 were accomplished.
· Ameriprise established itself as a strong Fortune 300 company, as demonstrated by its progress and success in the following areas for 2005: re-branding, reengineering, risk management, corporate governance, and regulatory compliance.