AbbVie 2014 Annual Report Download - page 172

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14FEB201503002751
13NOV201221352027
ADDITIONAL INFORMATION
Procedures for Approval of Related Person Transactions
................................................................................................................................................................................................................................................................................................................................................................................................
It is AbbVie’s policy that the nominations and governance committee review, approve, ratify or disapprove of all
transactions in which AbbVie participates and in which any related person has a direct or indirect material interest if
such transaction involves or is expected to involve payments of $120,000 or more in the aggregate per fiscal year.
Related person transactions requiring review by the nominations and governance committee pursuant to this policy are
identified in:
• questionnaires annually distributed to AbbVie’s directors and executive officers;
• certifications submitted annually by AbbVie executive officers related to their compliance with AbbVie’s Code
of Business Conduct; or
• communications made directly by the related person to the chief financial officer or general counsel.
In determining whether to approve or ratify a related person transaction, the nominations and governance
committee will consider the following items, among others:
• the related person’s relationship to AbbVie and interest in the transaction;
• the material facts of the transaction, including the aggregate value of such transaction or, in the case of
indebtedness, the amount of principal involved;
• the benefits to AbbVie of the transaction;
• if applicable, the availability of other sources of comparable products or services;
• an assessment of whether the transaction is on terms that are comparable to the terms available to an
unrelated third party or to employees generally;
• whether a transaction has the potential to impair director independence; and
• whether the transaction constitutes a conflict of interest.
This process is included in the nominations and governance committee’s written charter, which is available on
the corporate governance section of AbbVie’s investor relations website at www.abbvieinvestor.com.
Section 16(a) Beneficial Ownership Reporting Compliance
................................................................................................................................................................................................................................................................................................................................................................................................
AbbVie believes that during 2014 its executive officers and directors timely complied with all filing requirements
under Section 16(a) of the Securities Exchange Act of 1934, except that a Form 4 for Mr. Liddy reporting five exempt
grants of stock equivalent units was not timely filed.
Performance-Based Compensation Arrangements
................................................................................................................................................................................................................................................................................................................................................................................................
The Performance Incentive Plan and the Incentive Stock Program, which are described above, are intended to
comply with Internal Revenue Code Section 162(m) to ensure deductibility of performance-based compensation.
52 2015 Proxy Statement