AbbVie 2014 Annual Report Download - page 150

13NOV201221352027
Savings Plans
All U.S. employees, including NEOs, are eligible to defer a portion of their annual base salary to the AbbVie
Savings Plan, the company’s qualified defined contribution plan, up to the IRS contribution limits. NEOs also are eligible
to defer up to 18 percent of their base salary, less contributions to the AbbVie Savings Plan, to the AbbVie Supplemental
Savings Plan, which is a non-qualified defined contribution plan. Up to 100 percent of annual bonus awards earned by
the NEOs also are eligible for deferral to the Supplemental Savings Plan. NEOs may defer these amounts to unfunded
book accounts or choose to have the amounts paid in cash on a current basis and deposited into individually established
grantor trusts, net of tax withholdings. These amounts are credited annually with earnings. Amounts deposited in the
individual trusts are not tax-deferred and the NEOs personally pay the taxes on those amounts without gross-ups.
NEOs elect the manner in which the assets held in their grantor trusts will be distributed to them upon
retirement or other separation from the company. These arrangements are described in greater detail in this proxy
statement beginning with the section captioned ‘‘Summary Compensation Table.’’
Financial Planning
NEOs are eligible for a $10,000 annualized benefit associated with estate planning advice, tax preparation and
general financial planning fees. If an NEO chooses to utilize this benefit, fees for such services are paid by the company
and are treated as imputed income to the NEO, who then is responsible for payment of all taxes due on the fees paid by
the company without gross-ups.
Company-Provided Transportation
NEOs are eligible for transportation perquisites that are designed to improve the effectiveness and efficiency of
their work, including the use of a company-leased vehicle and access to company-provided air travel, as appropriate. In
very limited circumstances, these benefits may be used for personal travel, which would then be considered part of the
NEO’s total compensation and treated as taxable income to them under applicable tax laws. The NEOs pay the taxes on
such income without gross-ups.
Disability Benefits
In addition to AbbVie’s standard disability benefits, NEOs are eligible for a monthly long-term disability benefit,
which is described in greater detail in the section of this proxy statement captioned ‘‘Potential Payments upon
Termination or Change in Control.’’
Employment Agreements
AbbVie does not have employment agreements with any of its NEOs.
Change in Control Agreements
AbbVie has entered into change in control agreements with its NEOs to aid in retention and recruitment,
encourage continued attention and dedication to assigned duties during periods involving a possible change in control of
the company, and to protect the earned benefits of the NEOs against potential adverse changes resulting from a change
in control.
The change in control agreements contain a double-trigger feature, meaning that if the NEO’s employment is
terminated other than for cause or permanent disability, or if the NEO elects to terminate employment for good reason,
within two years following a change in control, he or she is entitled to receive certain pay and benefits as described in
the section of this proxy statement captioned ‘‘Potential Payments upon Termination or Change in Control.’’
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