AbbVie 2014 Annual Report Download - page 139

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14FEB201503003355
13NOV201221352027
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
................................................................................................................................................................................................................................................................................................................................................................................................
This Compensation Discussion and Analysis (CD&A) describes the pay philosophy established for AbbVie’s named
executive officers (NEOs), the design of our compensation programs, the process used to examine performance in the
context of executive pay decisions, and the performance goals and results for each NEO:
Richard A. Gonzalez Chairman of the Board and Chief Executive Officer
Michael E. Severino Executive Vice President, Research & Development and Chief Scientific Officer
Carlos Alban Executive Vice President, Commercial Operations
Laura J. Schumacher Executive Vice President, Business Development, External Affairs and General Counsel
William J. Chase Executive Vice President, Chief Financial Officer
Although we describe our programs in the context of the NEOs, it is important to note that our programs
generally have broad eligibility and therefore in most cases apply to employee populations outside the NEO group as
well.
CD&A Table of Contents
The CD&A is organized as follows:
I. Executive Summary ................................................................... 20
Compensation Philosophy .......................................................... 20
Business Overview ............................................................... 20
Business Performance Highlights ..................................................... 20
Components of our Compensation Program ............................................. 22
2014 Performance Results ......................................................... 23
Stockholder Engagement .......................................................... 24
Compensation Program Governance Summary ............................................ 24
II. Executive Compensation Process ......................................................... 24
Commitment to Performance-Based Awards ............................................. 24
Committee Process for Setting Total Compensation ........................................ 25
Peer Group Benchmarking ......................................................... 25
Role of the Compensation Consultant ................................................. 26
Compensation Risk Oversight ....................................................... 26
III. Compensation Plan Elements ........................................................... 26
Base Salary .................................................................... 26
Short-Term Incentives ............................................................ 26
Long-Term Incentives ............................................................. 28
Benefits ...................................................................... 29
Employment Agreements .......................................................... 30
Change in Control Agreements ...................................................... 30
IV. Other Matters ..................................................................... 31
Stock Ownership Guidelines ........................................................ 31
Clawback Policy ................................................................ 31
Anti-Hedging and Anti-Pledging Policies ................................................ 31
2015 Proxy Statement 19