AbbVie 2014 Annual Report Download - page 149

13NOV201221352027
2014 LTI Grants
Richard A. Gonzalez 281,030 162,960
Michael E. Severino 74,309 141,625*
Carlos Alban 81,500 47,260
Laura J. Schumacher 94,140 54,590
William J. Chase 92,740 53,770
* This number includes the award issued to Dr. Severino to replace prior employer stock awards that were forfeited
when he joined AbbVie.
LTI Grant Cycle
AbbVie’s policy with respect to its annual equity award for all eligible employees, including the NEOs, is to grant
the award and set the grant price at the compensation committee’s regularly scheduled February meeting each year.
These meeting dates generally are the third Thursday of February and are scheduled two years in advance. The grant
price is the average of the highest and lowest trading prices of a common share on the date of the grant (rounded up to
the next even penny). The grant price for the 2014 annual grant was $51.42. The high, low and closing prices of an
AbbVie common share on the grant date (February 20, 2014) were $52.11, $50.73, and $51.86, respectively. All LTI
awards are subject to a minimum vesting period of 12 months.
Benefits
Benefits are an important part of retention and capital preservation for all employees, helping to protect against
the impact of unexpected catastrophic loss of health and/or earnings potential, as well as providing a means to save and
accumulate for retirement or other post-employment needs.
Each of the benefits described below supports the company’s objective of providing a market competitive total
rewards program. Individual benefits do not directly affect decisions regarding other benefits or pay components, except
to the extent that all benefits and pay components must, in aggregate, be competitive, as previously discussed.
Retirement Benefits
All eligible U.S. employees, including NEOs, participate in the AbbVie Pension Plan, the company’s qualified
defined benefit plan. NEOs and certain other employees also participate in the AbbVie Supplemental Pension Plan. These
plans are described in greater detail in the section of this proxy statement captioned ‘‘Pension Benefits.’’
The Supplemental Pension Plan is a non-qualified defined benefit plan that cannot be secured in a manner
similar to a qualified plan, for which assets are held in trust, so NEOs receive an annual cash payment equal to the
increase in the present value of their Supplemental Pension Plan benefit. NEOs have the option of depositing the annual
payment into an individually established grantor trust, net of tax withholdings. Deposited amounts may be credited with
the difference between the NEO’s actual annual trust earnings and the rate used to calculate trust funding (currently
8 percent). Amounts deposited in the individual trusts are not tax-deferred and the NEOs personally pay the taxes on
those amounts without gross-ups.
The manner in which the grantor trust assets are to be distributed to an NEO upon retirement from the
company generally follows the distribution method elected by the NEO under the AbbVie Pension Plan. If an NEO (or the
NEO’s spouse, depending on the pension distribution method elected by the NEO under the AbbVie Pension Plan) lives
beyond the actuarial life expectancy age used to determine the Supplemental Pension Plan benefit, and therefore
exhausts the trust balance, the Supplemental Pension Plan benefit will be paid to the NEO (or his or her spouse) by
AbbVie.
2015 Proxy Statement 29
Stock Options (#) Performance-vested Restricted Stock Awards (#)
EXECUTIVE COMPENSATION