Share-based Compensation Plans Share-based Compensation Plans

12 Months Ended

Dec. 31, 2017

Share-based Compensation Plans [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Share-based Compensation Plans

We grant Restricted Stock Units (RSUs) and Performance Share Units (PSUs) to certain employees under the Ally Financial Inc. Incentive Compensation Plans (AICPs). The AICPs allow us to grant an array of equity-based and cash incentive awards to our named executive officers and other employees. Each of our approved compensation plans and awards are designed to provide certain of our employees with an opportunity to share in the future growth of value at Ally, which is necessary to attract and retain key talent. In 2017, we received stockholder approval on amendments to our AICPs. At December 31, 2017, we had 37,778,224 shares available for future grants of incentive-based equity remaining under the AICPs.

Our share-based compensation awards generally settle in Ally common stock and are classified as equity awards under GAAP. The cost of the awards are ratably charged to compensation and benefits expense in our Consolidated Statement of Income over their applicable service period and are based on the grant date fair value of Ally common stock.

PSU and RSU Awards

PSUs are payable contingent upon Ally achieving certain predefined performance objectives over a two-year measurement period and a three-year service condition. The number of awards payable upon vest can range from zero to 150% of the grant amount. The PSU awards settle in the form of Ally common stock. We accrue dividend equivalents for our PSUs that are paid upon vesting and based on the number of awards payable upon vest.

RSUs are awarded to employees at no cost to the recipient upon their grant. The compensation costs related to these awards are ratably charged to expense over the applicable service period. The majority of the existing RSUs settle in the form of Ally common stock. RSUs granted in 2015 generally vested ratably over a two-year period starting on the date the award was issued and converted into shares of common stock at the end of the two-year period. RSU awards granted in 2017 and 2016 generally vest one third ratably each year over a three-year period starting on the date the award was issued and are converted into shares of common stock as of the vesting date. We accrue dividend equivalents for our RSUs that are paid upon vesting. Ally has awards that vested but were not yet distributed for the years ended December 31, 2017, 2016, and 2015. The following table presents the changes in outstanding non-vested PSUs and RSUs activity during 2017.

(in thousands, except per share data)	Number of units		Weighted-average grant date fair value per share
RSUs and PSUs
Outstanding non-vested at January 1, 2017	5,443		$	19.00
Granted	3,280		21.30
Vested	(3,043	)	19.84
Forfeited	(88	)	19.39
Outstanding non-vested at December 31, 2017	5,592		19.89

We recognized expense related to PSU and RSU awards of $60 million, $54 million, and $49 million for the years ended December 31, 2017, 2016, and 2015, respectively.