AbbVie 2014 Annual Report Download - page 155

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Earnings and Pre-2013 Tax Payments for Non-Qualified Defined Benefit and Non-Qualified Defined Contribution Plans
(net of the reportable interest included in footnote (5)).
R. Gonzalez: $94,209 / $73,532 / $154,681; M. Severino: $0; C. Alban: $137,370 / $79,626 / $42,667;
L. Schumacher: $302,097 / $188,374 / $97,801; and W. Chase: $50,968 / $22,474 / $13,526.
Each of the NEOs’ awards under the AbbVie Performance Incentive Plan is paid in cash to the NEO on a current
basis and may be deposited into a grantor trust established by the NEO, net of maximum tax withholdings. Each of
the NEOs has also established grantor trusts in connection with the AbbVie Supplemental Pension Plan and the
AbbVie Supplemental Savings Plan. These amounts include the earnings (net of the reportable interest included in
footnote (5)) and (for years before 2013) fees and tax payments paid in connection with these grantor trusts.
Employer Contributions to Defined Contribution Plans
R. Gonzalez: $79,798 / $75,000 / $0; M. Severino: $25,188; C. Alban: $42,223 / $35,500 / $30,788; L. Schumacher:
$47,879 / $45,000 / $41,584; and W. Chase: $46,186 / $39,500 / $19,947.
These amounts include AbbVie contributions to the AbbVie Savings Plan and the AbbVie Supplemental Savings Plan.
The Supplemental Savings Plan permits the NEOs to contribute amounts in excess of the annual limit set by the
Internal Revenue Code for employee contributions to 401(k) plans up to the excess of (i) 18 percent of their base
salary over (ii) the amount contributed to AbbVie’s tax-qualified 401(k) plan. AbbVie matches participant
contributions at the rate of 250 percent of the first 2 percent of compensation contributed to the plan. The NEOs
have these amounts paid to them in cash on a current basis and deposited into a grantor trust established by the
NEO, net of maximum tax withholdings.
Other 2014 Compensation
The totals shown in the table include the cost of providing a corporate automobile less the amount reimbursed by
the NEO: R. Gonzalez: $13,680; M. Severino: $7,152; C. Alban: $17,622; L. Schumacher: $15,205; and W. Chase:
$17,216.
The totals shown in the table include the following costs associated with financial planning services: R. Gonzalez:
$10,000; M. Severino: $0; C. Alban: $9,488; L. Schumacher: $7,500; and W. Chase: $7,555.
The totals shown in the table include the following costs for non-business-related air travel: R. Gonzalez: $525,886;
and L. Schumacher: $29,414. AbbVie determines the incremental cost for flights based on the direct cost to AbbVie,
including fuel costs, parking, handling and landing fees, catering, travel fees, and other miscellaneous direct costs.
AbbVie also imputes income to the NEO for these costs and the NEO pays taxes on that income in accordance with
tax regulations.
For Dr. Severino, the total includes $172,764 for relocation costs.
For Mr. Alban, the total includes income tax equalization of $1,382,788 related to stock options he received as
long-term incentive awards in 2007, 2008 and 2009 during his expatriate assignment in France. French law taxes
income on equity awards granted while an employee is working on assignment in France, regardless of the
employee’s home country or location when the awards vest or are exercised, and regardless of whether the
employee pays taxes on such awards in another country. AbbVie provides tax equalization expatriate benefits to all
AbbVie employees who take an international assignment to mitigate differences in tax laws between the employees’
home and assignment countries. During 2013, Mr. Alban exercised the options he received during his expatriate
assignment in France and the resulting French taxes were due in 2014, which triggered the income tax equalization
benefit. Mr. Alban personally paid the U.S. taxes associated with the exercise of the stock options.
The NEOs also are eligible to participate in an executive disability benefit described in the section of this proxy
statement captioned ‘‘Potential Payments upon Termination—Generally.’’
(7) This number includes the change in pension value during 2014, which is attributable to changes in actuarial
assumptions (primarily discount rate and mortality tables) and other factors based on plan design (primarily pay,
service and age).
The present value of a pension benefit is determined, in part, by the discount rate used for accounting purposes.
As required by the Financial Accounting Standards Board, the discount rate is determined by reference to the
2015 Proxy Statement 35
EXECUTIVE COMPENSATION