William F. Truscott
AMERIPRISE FINANCIALAbout William F. Truscott
William F. “Ted” Truscott is Chief Executive Officer, Global Asset Management, leading Columbia Threadneedle Investments (Ameriprise’s global asset manager) across strategies for individual, institutional and corporate clients . He joined Ameriprise in September 2001 after senior investment roles at Zurich Scudder and Scudder, Stevens & Clark; he has served as CEO of Columbia Threadneedle since 2012 . He holds a BA (East Asian Studies) from Middlebury College and an MBA (Finance) from NYU Stern . Under his leadership in 2024, Asset Management segment earnings grew 28% and AUM/A rose to $681 billion amid industry headwinds , with Ameriprise delivering 42% TSR in 2024 and No. 1 TSR in S&P 500 Financials since the 2005 spin-off .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Chemical Bank | Credit Analyst and Banking Officer; later LDC Structured Finance (LatAm debt/equity swaps) | 1983–1992 | Covered Asian banks/corporates; managed debt/equity swap portfolio in Latin America . |
| Scudder, Stevens & Clark / Zurich Scudder | Portfolio Manager & Equity Research Analyst (LatAm); Managing Director; CIO, Americas | 1992–2001 | Led Americas CIO function; investment leadership across equities . |
| Ameriprise / Columbia Threadneedle Investments | CEO, Global Asset Management (Columbia Threadneedle) | 2012–present | Global leadership; transformation, cost savings, product expansion; 2024 segment earnings +28% . |
| Ameriprise Financial | Joined company | Sep 2001–present | Led U.S. asset management prior to global CEO role . |
External Roles
| Organization | Position | Notes |
|---|---|---|
| Investment Company Institute (ICI) | Board of Governors; prior Chairman (re-elected 2017) | Long-standing governance role; Chair in 2016–2017 . |
| Middlebury College | Board of Trustees (Trustee; Chair referenced in org bios) | Alumni trustee leadership . |
| Greater Boston Food Bank | Board of Directors (Chair referenced in org bios) | Community leadership . |
| Boston Medical Center | Philanthropic Trust (Chair referenced in org bios) | Community leadership . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 675,000 | 675,000 | 675,000 |
| Annual Cash Incentive Awards ($) | 2,610,000 | 2,700,000 | 3,040,000 |
| Long-Term Incentive Awards ($) | 3,900,000 | 3,625,000 | 4,300,000 |
| Total Direct Compensation ($) | 7,185,000 | 7,000,000 | 8,015,000 |
Additional SCT disclosure (accounting grant timing) for context:
| SCT Line Item | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 675,000 | 675,000 | 675,000 |
| Stock Awards ($) | 1,012,500 | 1,053,000 | 978,750 |
| Option Awards ($) | 862,500 | 897,000 | 833,750 |
| Non-Equity Incentive Plan Comp ($) | 2,610,000 | 2,700,000 | 3,040,000 |
| Change in Pension Value/Non-Qual Def Comp ($) | — | 477,715 | 372,431 |
| All Other Compensation ($) | 224,771 | 180,672 | 251,508 |
| Total ($) | 7,259,771 | 7,933,387 | 7,963,939 |
Performance Compensation
Annual Incentive Award (AIA) structure and governance:
- Weighting: 70% Financial Performance; 30% Business & Strategic Performance; awards leverage 0–175% based on five-point ratings vs pre-set targets with adjustments for uncontrollables (e.g., market ranges), per Committee policy .
- Financial measures align to core shareholder metrics (adjusted operating net revenues, earnings, EPS, ROE; reconciliations in proxy appendix) .
- Committee concluded pay programs do not create material adverse risk; strong ownership rules and controls in place .
2024 long-term incentive design and grants (based on 2023 performance; granted 1/26/2024):
| Component | Grant Date | Shares/Units | Terms | Grant-Date Fair Value ($) |
|---|---|---|---|---|
| Performance Share Units (PSUs) | 1/26/2024 | Target 4,630; Max 8,102 | 3-year cliff; metrics: 3-year adjusted ROE, adjusted EPS and TSR | 1,812,500 |
| Restricted Stock Units (RSUs) | 1/26/2024 | 2,500 | Pro rata over 3 years | 978,750 |
| Non-Qualified Stock Options | 1/26/2024 | 7,386 @ $391.40 exercise price | Pro rata over 3 years; 10-year term | 833,750 |
2024 vesting and realizations:
- RSU vesting: 1/27/2024 (1,019 vested; net 550 after tax); 1/28/2024 (1,132 vested; net 611); 1/29/2024 (1,743 vested; net 941). Closing prices used for value: $391.40 (1/27–28), $393.11 (1/29) .
- PSU vesting: 1/29/2024 16,971 shares vested; net 8,765 after tax .
- Option exercises (liquidity indicator): 39,323 and 30,958 shares acquired on exercise in 2024 with realized values $12,345,849 and $6,565,573, respectively .
- These events drive mechanical share sales for tax/withholding but hedging/pledging is prohibited (see alignment section) .
Equity Ownership & Alignment
Beneficial ownership (as of March 3, 2025):
| Holder | Shares Owned | Right to Acquire within 60 days (Options) | DSUs/RSUs | Total Shares + DSUs/RSUs | % of Class |
|---|---|---|---|---|---|
| William F. Truscott | 11,065 | 65,988 | 6,517 | 83,570 | <1% |
Ownership policies and alignment:
- Stock ownership guidelines: 4x base salary for NEOs; 17.7x average actual ownership for Other NEOs at FY-end; CEO 10x guideline (firm-wide policy) .
- Retention: If below guideline, must retain 75% of net shares from vesting/exercise until compliant .
- Hedging and pledging: Prohibited; “None of the shares owned by our directors or executive officers are subject to any kind of pledge” .
- Say-on-pay support: 89% approval in 2024 (indicative of shareholder alignment) .
Outstanding equity awards (selected items; as of Dec 31, 2024):
| Type | Grant Date | Exercisable | Unexercisable | Exercise Price | Expiration |
|---|---|---|---|---|---|
| Stock Options | 01/31/2020 | 28,546 | — | $165.41 | 01/31/2030 |
| Stock Options | 01/29/2021 | 18,276 | — | $197.87 | 01/29/2031 |
| Stock Options | 01/28/2022 | 7,144 | 3,572 | $298.09 | 01/28/2032 |
| Stock Options | 01/26/2024 | — | 7,386 | $391.40 | 01/26/2034 |
Unvested stock and PSUs (as of Dec 31, 2024):
| Stock Grant Date | RSUs Not Vested (#) | PSUs Unearned (#) | Market Value ($) |
|---|---|---|---|
| 01/28/2022 | 1,132 | 6,290 | 602,711 (RSUs) ; 3,348,985 (PSUs) |
| 01/27/2023 | 2,038 | — | 1,085,092 |
Vesting events and withholdings in 2024 (tax/liquidity dynamics):
| Date | Instrument | Shares Vested | Shares Withheld (Taxes) | Net Delivered | Close Price |
|---|---|---|---|---|---|
| 01/27/2024 | RSU | 1,019 | 469 | 550 | $391.40 |
| 01/28/2024 | RSU | 1,132 | 521 | 611 | $391.40 |
| 01/29/2024 | RSU | 1,743 | 802 | 941 | $393.11 |
| 01/29/2024 | PSU | 16,971 | 8,206 | 8,765 | $393.11 |
Notes: All directors/officers prohibited from hedging/pledging; shares withheld for taxes at vesting; option exercises realized significant intrinsic value in 2024 .
Employment Terms
Senior Executive Severance Plan (coverage: CEO, CFO, Truscott, Sweeney):
- Eligibility: Involuntary termination in workforce reduction/closure or constructive termination within 2 years after Change in Control (CIC) .
- Formula: Multiple of (annual base compensation + average bonus/incentive over prior 3 years); pro-rated bonus for year of termination; continued medical/dental during severance period; additional SRP credit upon CIC termination .
- CIC definition includes 30%+ voting power acquisition, or >50% voting plus asset/equity value threshold, or board majority replacement within 12 months without prior board endorsement; constructive termination includes reductions in pay opportunity, relocation beyond specified distances, or significant diminutions in duties, after cure period .
Potential payments for Mr. Truscott (assumes termination on Dec 31, 2024):
| Scenario | Severance Benefit ($) | AIA Payment ($) | Accelerated PSUs ($) | Accelerated Options ($) | Accelerated RSUs ($) | SRP Contributions ($) | Health/Welfare ($) | Other (Life/Disability) ($) | Total ($) |
|---|---|---|---|---|---|---|---|---|---|
| Voluntary Termination/Retirement | — | 3,040,000 | — | — | — | — | — | — | 3,040,000 |
| For Cause | — | — | — | — | — | — | — | — | — |
| Involuntary Not for Cause | 5,187,500 | 3,040,000 | — | — | — | — | 25,957 | — | 8,253,457 |
| Involuntary or Good Reason post-CIC (double-trigger) | 10,375,000 | 2,655,000 | 6,180,092 | 3,004,334 | 3,018,878 | 571,250 | 51,913 | — | 25,856,467 |
| Disability | — | 3,040,000 | 6,180,092 | 3,004,334 | 3,018,878 | — | — | 564,191 | 15,807,495 |
| Death | — | 3,040,000 | 6,180,092 | 3,004,334 | 3,018,878 | — | — | 675,000 | 15,918,304 |
Vested plan balances payable upon termination for any reason (as of Dec 31, 2024): Retirement Plan $451,924; 401(k) $1,803,454; Supplemental Retirement Plan $5,547,236; Deferred Compensation Plan $3,698,637; Total $11,501,251 . Pension present value: Retirement Plan $449,805; SRP $4,901,623; total $5,351,428 (2024) .
Performance & Track Record
- Asset Management achievements (2024): Segment earnings +28%; AUM/A $681B; stronger relative Europe retail flow rates; transformation yielded substantial cost savings, simplification, automation and resource reallocation; 108 funds with 4/5-star Morningstar ratings; top-11 in Barron’s Best U.S. Fund Families 2023 (1-, 5-, 10-year); #6 in Institutional Investor’s 2024 U.S. asset manager ranking .
- Distribution/product initiatives: Expanded ETF, models, SMAs; grew model delivery AUA +36% to top-7 in U.S.; RIA channel build-out; enhanced digital engagement .
- Corporate TSR context: 2024 TSR +42%; top TSR in S&P 500 Financials since 2005 spin-off .
Compensation Committee, Peer Group, and Say-on-Pay
- Committee process: Quantitative scorecards, leverage, and qualitative leadership assessment; independent consultant Semler Brossy advises Committee; programs reviewed for risk .
- Peer group (2024): Asset Mgmt (BlackRock, Carlyle, Jefferies, Invesco, T. Rowe Price); Advice/Wealth (BNY Mellon, Schwab, Morgan Stanley, Raymond James, State Street, U.S. Bancorp); Retirement/Protection (Aflac, Principal, Prudential) .
- Say-on-Pay: 89% support in 2024; shareholder engagement with holders representing ~one-third of shares .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited; no pledges outstanding for executives/directors .
- Clawback: NYSE-compliant policy to recoup erroneously awarded incentive comp upon restatements; covers current/former Section 16 officers; material misconduct clawback also referenced .
- Option repricing/gross-ups: No option repricing without shareholder approval; no excise tax gross-ups .
- Section 16 compliance: Company noted historical late filings not previously disclosed, including one late Form 4 for Mr. Truscott in 2018; all 2024 reports timely filed .
Investment Implications
- Pay-for-performance alignment appears strong: 70/30 AIA scorecard tied to financial and strategic outcomes; 50% of LTI in PSUs with 3-year cliff based on adjusted ROE, adjusted EPS, and TSR; robust ownership/retention rules and no hedging/pledging support alignment with shareholders .
- Vesting and exercises imply episodic selling pressure: Significant 2024 option exercises (~$18.9M intrinsic value realized) and PSU/RSU vesting with tax withholdings can create technical supply around vest/ex dates, though outright pledging/hedging is prohibited .
- Retention risk moderated by severance/CIC economics and sizable unvested equity: Double-trigger CIC with full equity acceleration and above-$25M total package in CIC termination scenario increases stickiness; ongoing unvested PSUs/RSUs and option overhang further encourage tenure .
- Execution track record is favorable within Asset Management: +28% earnings growth, improved flows versus peers in key regions, and recognized investment performance underpin credibility, though the business still faces fee pressure and market/geopolitical volatility .