AbbVie 2014 Annual Report Download - page 124

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9MAR201523042881
13FEB201501375473
13NOV201221352027
Three primary components make up AbbVie’s executive pay program: base salary, short-term incentives and
long-term incentives. The structure of each component is tailored to serve a specific function and purpose.
Plan ulizes financial and non-
financial goals, as well as an
assessment of individual performance
against strategic objecves, such as:
— Adjusted diluted EPS
— Adjusted net sales
— Adjusted income before taxes
— Adjusted return on assets
— Strategic and leadership goals
— Performance-vested restricted
stock (75% of NEO's LTI award)
— Non-qualified stock opons
(25% of NEO's LTI award)
• Long-term incenve awards are
granted in the form of:
• Levels of awards NEOs receive vary
according to plan design and
performance as reviewed by our
compensaon commiee
Individual salaries are established relave to market median based on each NEO's
performance, skills and experience, and internal equity
• Awards are based on historical peer
and company performance,
expectaons for our pipeline
products, and expected business,
market and regulatory condions
• Compensaon commiee
establishes maximum award
allocaons for plan parcipants each
year as a percentage of consolidated
net earnings (in addion, awards are
capped at 200% of target beginning
in 2015)
• Awards are based on LTI program
goals and company business
performance, as well as individual
factors
• Commiee determines grants for
each NEO based on its assessment
of performance and progress against
strategic milestones
Base Salary
Short-Term
Incenves
Long-Term
Incenves
42015 Proxy Statement
PROXY STATEMENT SUMMARY