AbbVie 2012 Annual Report Download - page 138

leadership competencies and other individual contributions to Abbott’s performance on a qualitative
basis. Additionally, Abbott may also consider unforeseen circumstances or developments in the
company, marketplace and/or the global economy that may have affected performance.
For each participant, a target bonus is set as follows:
Base Salary * Target Bonus Percentage = Target Bonus Amount
To determine each individual’s annual bonus, Abbott considered the executive’s target bonus, expressed
as a percentage of base pay, and made its final determination of the appropriate award at, above or
below the target, considering all of these factors, and in consultation with its independent compensation
consultant. While the review is comprehensive, it is not solely formulaic.
In each case, for all of the named executive officers, and furthermore, all other officers not subject
to this disclosure, there were multiple levels of review of the proposed 2012 bonus award. For the Chief
Executive Officer, Abbott’s Compensation Committee and its independent compensation consultant
reviewed the proposed bonus award. For the other named executive officers and other officers not
subject to this disclosure, Abbott’s Chief Executive Officer and Abbott’s Compensation Committee and
its independent compensation consultant reviewed the proposed awards. Additionally, AbbVie’s
Committee reviewed the final payouts for the named executive officers and other AbbVie officers not
subject to this disclosure.
Actual bonuses generally were above the target based on a comprehensive review of individual and
corporate performance by Abbott and its Compensation Committee’s independent compensation
consultant.
Richard A. Gonzalez
Effective February 15, 2013, Mr. Gonzalez was awarded a bonus of $2,500,000, which was above
his target bonus of 105 percent of base pay. Effective February 17, 2012, he received long-term
incentives, including a 107,300 share stock option grant and a 59,400 share performance-vesting
restricted stock award. Effective December 1, 2012, related to his appointment as Chairman and Chief
Executive Officer of AbbVie, Mr. Gonzalez’s base salary was set at $1,500,000 and his bonus target for
2013 was set at 200 percent of base salary.
Laura J. Schumacher
Effective February 15, 2013, Ms. Schumacher was awarded a bonus of $1,270,000, which was above
her target bonus of 110 percent of base pay. Effective December 13, 2012, she received a discretionary
cash bonus of $1,100,000 in recognition of performance related to the business separation. Effective
February 17, 2012, she received long-term incentives, including a 79,800 share stock option grant and a
44,200 share performance-vesting restricted stock award. Effective December 1, 2012, related to her
appointment as Executive Vice President, Business Development, External Affairs and General Counsel
of AbbVie, Ms. Schumacher’s base salary was set at $900,000. She also received a 30,755 share
performance-vesting restricted stock award, which converted 100 percent to AbbVie performance-
vesting restricted stock at Separation. The award will cliff vest after January 1, 2016, subject to
continued employment with AbbVie and the satisfaction of AbbVie performance criteria.
Ms. Schumacher’s bonus for 2012 was based on her salary and bonus target in effect at the beginning
of 2012.
William J. Chase
Effective February 15, 2013, Mr. Chase was awarded a bonus of $500,000, which was above his
target bonus of 80 percent of base pay. Additionally, effective December 13, 2012, he received a
discretionary cash bonus of $500,000 in recognition of performance related to the business separation.
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