AbbVie 2014 Annual Report Download - page 154

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the number of shares granted by the average of the high and low market prices of one share of AbbVie common
stock on the award grant date.
(2) In accordance with SEC rules, the amounts in this column represent the aggregate grant date fair value of the
awards in accordance with Financial Accounting Standards Board ASC Topic 718.
(3) These amounts were determined as of the option grant date using a Black-Scholes stock option valuation model.
These amounts are being reported solely for the purpose of comparative disclosure in accordance with the SEC
rules. There is no certainty that the amount determined using a Black-Scholes stock option valuation model would
be the value at which employee stock options would be traded for cash. The weighted-average assumptions used to
estimate the grant date fair value of options, along with the weighted-average grant date fair value, are shown
below:
Risk-free interest rate 1.91% 1.94%
Average life of options (years) 6.0 6.0
Volatility 27.01% 25.44%
Dividend yield 3.19% 3.10%
Fair value per stock option $9.83 $9.89
The assumptions for Dr. Severino’s stock options differ from those for the other NEOs because they were granted
on different dates.
(4) The compensation reported in this column for 2014 was earned as a performance-based incentive bonus pursuant
to the AbbVie Performance Incentive Plan. Additional information regarding the plan can be found in the section of
this proxy statement captioned ‘‘Executive Compensation Process.’’
(5) Except as provided below, the plan amounts shown below are reported in this column.
The amounts shown beside each NEO’s name are for 2014, 2013, and 2012, respectively, as applicable. The
amounts shown for Dr. Severino are for 2014. Negative amounts under the AbbVie Pension Plan and the AbbVie
Supplemental Pension Plan are excluded from this column in accordance with SEC rules.
AbbVie Pension Plan
R. Gonzalez: $142,324 / $3,002 / $(426,732); M. Severino: $18,610; C. Alban: $189,552 / $(42,843) / $204,199;
L. Schumacher: $166,274 / $33,119 / $129,541; and W. Chase: $148,641 / $(43,043) / $96,217.
AbbVie Supplemental Pension Plan
R. Gonzalez: $4,794,683 / $(717,929) / $(4,420,361); M. Severino: $170,007; C. Alban: $1,992,235 / $401,517 /
$1,521,110; L. Schumacher: $2,072,222 / $783,337 / $1,464,372; and W. Chase: $1,500,464 / $336,946 / $378,802.
The changes in pension value result primarily from the following factors: (i) the effect of changes in the actuarial
assumptions AbbVie uses to calculate plan liability for financial reporting purposes; (ii) additional pension benefit
accrual under the Pension Plan and the Supplemental Pension Plan; and (iii) the impact of the time value of money
on the pension value.
Non-Qualified Defined Contribution Plan Earnings
The totals in this column include reportable interest credited under the AbbVie Performance Incentive Plan and the
AbbVie Supplemental Savings Plan.
R. Gonzalez: $107,802 / $41,612 / $64,503; M. Severino: $294; C. Alban: $115,868 / $58,250 / $75,700;
L. Schumacher: $227,423 / $128,092 / $177,393; and W. Chase: $61,667 / $21,884 / $23,972.
(6) The amounts shown below are reported in this column. The amounts shown beside each NEO’s name are for 2014,
2013, and 2012, respectively, as applicable.
34 2015 Proxy Statement
Assumption All Other NEOs Severino
EXECUTIVE COMPENSATION