Financial company cuts CEO’s pay

Financial company cuts CEO’s pay

Financial company cuts CEO’s pay How do you respond to your worst year since the financial crisis? In the case of many companies, it seems like the ‘top brass’ are the last to feel the impact: however, that’s certainly not the case with Ameriprise Financial Inc.

The company has chosen to reduce CEO Jim Cracchiolo’s pay by 15 per cent, with his compensation falling from $24.5 million to $20.7 million. This came in part due to a decrease in non-equity incentive plan compensation: indeed awards were also lowered for the company’s CEO of global asset management William Truscott, chief financial officer Walter Berman and global chief investment officer Colin Moore.

According to a Washington Post and Bloomberg story, asset managers at the company have faced pressures from volatile markets. Investment results have been hurt and there have been significant outflows from the company’s Acorn Fund. In addition, the company chose to withdraw from the travel insurance arena as its venture fell short of profitability expectations.

In a filing, Ameriprise commented that compensation for each named executive officer was lower because the compensation is based on the company’s performance. It described its results as “solid” rather than the “excellent” label it used in the previous year.

Overall, Ameriprise dropped by 20 per cent in stock trading during 2015 – it’s worst slump since the financial crisis of 2008.