AbbVie 2012 Annual Report Download - page 156

2012 NONQUALIFIED DEFERRED COMPENSATION
The following table summarizes Ms. Schumacher’s and Mr. Chase’s non-qualified deferred
compensation under the Abbott Laboratories Deferred Compensation Plan. Ms. Schumacher,
Mr. Chase and Abbott have not contributed to accounts under the plan since such time as Ms.
Schumacher and Mr. Chase, respectively, became Abbott officers. None of the other named executive
officers has any non-qualified deferred compensation.
Executive Registrant Aggregate Aggregate Aggregate
contributions contributions earnings withdrawals/ balance at
in last FY in last FY in last FY distributions last FYE
Name Plan Name ($) ($) ($)(3) ($) ($)(4)
L. J. Schumacher . Deferred Compensation Plan(1)(2) 0 0 $38,624 0 $274,833
W. J. Chase .....Deferred Compensation Plan(1)(2) 0 0 6,889 0 54,632
(1) Ms. Schumacher’s and Mr. Chase’s contributions to the Deferred Compensation Plan ceased after they
became Abbott officers.
(2) The plan permits participants to defer up to 75 percent of their base salary and up to 100 percent of
their annual cash incentives and credits a participant’s account with an amount equal to the employer
matching contributions that otherwise would have been made for the participant under Abbott’s
tax-qualified defined contribution plan. Participants may direct the investment of their deferral accounts
into one or more of several funds chosen by the administrator, and the deferral account is credited with
investment returns based on the performance of the fund(s) selected. During 2012, the weighted average
rate of return credited to accounts was 16.4 percent for Ms. Schumacher and 14.4 percent for
Mr. Chase.
The plan provides for cash distributions in either a lump sum or installments after separation from
service and permits in-service withdrawals in accordance with specific procedures. Participants make
distribution elections each year that apply to the deferrals to be made in the following calendar year, in
accordance with the requirements of Internal Revenue Code Section 409A. Participants may request
withdrawals due to financial hardship; if a hardship withdrawal is approved, it is limited to the amount
needed to address the hardship.
(3) The amounts reported in this column are not included in the Summary Compensation Table of this
proxy statement.
(4) The amounts reported in this column have not been previously reported as compensation in Abbott’s
Summary Compensation Tables because they relate to contributions made before the applicable
individual became a named executive officer.
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL
Potential Payments Upon Termination—Generally
Abbott does not have employment agreements with its named executive officers.
The following summarizes the payments that the named executive officers would have received if
their employment had terminated on December 31, 2012. Earnings, fees, and tax payments would have
continued to be paid for the named executive officer’s Performance Incentive Plan, Management
Incentive Plan, and Supplemental 401(k) Plan grantor trusts, until the trust assets were fully distributed,
and fees would have continued to be paid for the named executive officer’s Supplemental Pension Plan
grantor trust, until its assets were fully distributed. The amount of these payments would depend on the
period over which the trusts’ assets were distributed, tax rates, and the trusts’ earnings and fees. If the
trusts’ assets were distributed over a ten-year period and based on current tax rates, earnings, and fees,
the named executive officers would receive the following average annual payments over such ten-year
period: L. J. Schumacher, $273,114; W. J. Chase, $47,329; C. Alban, $125,588; and J. M. Leonard,
$238,869. Pursuant to an election made at the time of his retirement in 2007, Mr. Gonzalez’s trust
assets began to be distributed over a 35-year period when he retired. Based on current tax rates,
earnings and fees, and assuming the distributions continue during the remaining 30 years of the
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