Share-based Compensation Plans Share-based Compensation Plans (Notes)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Compensation and Employee Benefit Plans [Text Block]

23.    Share-based Compensation Plans

We grant Restricted Stock Units or Awards (RSUs) and Performance Stock Units or Awards (PSUs) to certain employees under the Ally Financial Inc. Incentive Compensation Plan (AICP). The AICP allows us to grant an array of equity-based and other incentive awards to our named executive officers and other employees. These awards are structured to align with long-term value creation for our stockholders, to provide appropriate incentives for participating employees, and to achieve the other objectives of our compensation philosophy. At December 31, 2019, we had 30,703,972 shares available for future grants of equity-based awards remaining under the AICP.

Our equity-based awards generally settle in Ally common stock and are classified as equity awards under GAAP. The cost of the awards is 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. The awards typically include retirement eligibility and qualifying termination provisions, which fully vest as of the date upon meeting the eligibility requirements and are paid on the original settlement date.

PSUs and RSUs

PSUs are payable contingent upon Ally achieving certain predefined performance objectives over a three- year measurement period for 2019 granted awards, or a two-year measurement period for 2018, 2017, and 2016 granted awards. All PSUs granted have a three-year service condition. The number of awards payable upon vesting can range from zero to 150% of the grant amount. The PSUs 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.

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 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, 2019, 2018, and 2017.

The following table presents the changes in outstanding non-vested PSUs and RSUs activity during 2019.

(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, 2019	4,864		$	23.71
Granted	3,007		26.29
Vested	(3,411	)	22.37
Forfeited	(93	)	26.28
Outstanding non-vested at December 31, 2019	4,367		26.48

We recognized expense related to PSUs and RSUs of $67 million, $72 million, and $60 million for the years ended December 31, 2019, 2018, and 2017, respectively.