AbbVie 2012 Annual Report Download - page 147

All Other
Estimated Future Estimated Option
Payouts Under Future Awards: Exercise Grant Date
Non-Equity Payouts Numbers of or Base Closing Fair Value
Incentive Plan Under Equity Securities Price of Market of Stock
Awards(1) Incentive Underlying Options Price on and
Grant Target Maximum Plan Awards Options Awards Grant Option
Name Date ($) ($) Target (#) (#) ($/Sh.) Date Awards
W. J. Chase ......... 02/17/12 10,900(2)(3) 613,234(4)
12/01/12 23,066(7) 1,499,982(4)
02/17/12 19,600(5) 56.26 56.36 133,280(6)
04/26/12 2,390(8) 61.60 61.86 4,947(6)
05/25/12 2,177(8) 62.42 62.25 4,158(6)
07/30/12 1,620(8) 66.39 66.60 4,649(6)
09/13/12 1,591(8) 67.84 69.27 4,662(6)
09/14/12 3,438(8) 69.27 68.27 10,383(6)
C. Alban ........... 02/17/12 26,700(2)(3) 1,502,142(4)
12/01/12 18,453(7) 1,199,999(4)
02/17/12 48,100(5) 56.26 56.36 327,080(6)
07/23/12 2,482(8) 65.06 64.64 4,393(6)
J. M. Leonard ....... 02/17/12 18,300(2)(3) 1,029,558(4)
12/01/12 18,453(7) 1,199,999(4)
02/17/12 33,000(5) 56.26 56.36 224,400(6)
(1) During 2012, Mr. Gonzalez, Ms. Schumacher, Mr. Alban, and Dr. Leonard participated in the 1998
Abbott Laboratories Performance Incentive Plan and Mr. Chase participated in the 1986 Abbott
Laboratories Management Incentive Plan, both of which are annual, non-equity incentive plans. The
annual cash incentive award earned by the named executive officer in 2012 under the applicable plan
is shown in the Summary Compensation Table in the column captioned ‘‘Non-Equity Incentive Plan
Compensation.’’ No future payouts will be made under the plans’ 2012 annual cash incentive award.
These plans are described in greater detail in the section of this proxy captioned ‘‘Compensation
Discussion and Analysis—Compensation Components—Performance-Based Annual Cash Incentives.’’
(2) These are performance-based restricted stock awards that have a five-year term and vest upon
Abbott achieving a minimum return on equity target, with no more than one-third of the award
vesting in any one year. In 2012, Abbott reached its minimum return on equity target and
one-third of each of the awards granted on February 17, 2012 vested on February 28, 2013. The
return on equity targets are described in the section of this proxy captioned ‘‘Compensation
Discussion and Analysis—Compensation Components—Long-Term Incentives—Equity Awards.’’
(3) In the event of a grantee’s death or disability or a change in control of Abbott, as defined in
Abbott Laboratories’ Incentive Stock programs, these awards are deemed fully earned.
Outstanding restricted shares receive dividends at the same rate as all other shareholders.
(4) The grant date fair value of stock awards is determined by multiplying the number of restricted
shares granted by the average of the high and low market prices of an Abbott common share on
the grant date.
(5) One-third of the shares covered by these options are exercisable after one year; two-thirds after
two years; and all after three years. The options vest in the event of the grantee’s death or
disability or a change in control of Abbott. Under the Abbott Laboratories 2009 Incentive Stock
Program, these options have an exercise price equal to the average of the high and low market
prices (rounded-up to the next even penny) of an Abbott common share on the date of grant.
These options do not contain a replacement option feature.
(6) These values were determined as of the option grant date using a Black-Scholes stock option
valuation model. The model uses the assumptions described in Note 8, entitled ‘‘Incentive Stock
33