AbbVie 2012 Annual Report Download - page 152

2012 OPTION EXERCISES AND STOCK VESTED
The following table summarizes for each named executive officer the number of shares the officer
acquired on the exercise of stock options and the number of shares the officer acquired on the vesting
of stock awards in 2012:
Option Awards Stock Awards
Number of Number of
Shares Value Shares Value
Acquired On Realized On Acquired On Realized On
Name Exercise (#) Exercise ($) Vesting (#) Vesting ($)
R. A. Gonzalez(a) ......................... 219,192 $ 830,128 43,066 $2,518,415
L. J. Schumacher(b) ........................ 187,881 3,067,988 42,100 2,401,384
W. J. Chase ............................. 21,285 291,998 10,566 602,685
C. Alban ............................... 54,719 1,127,331 27,766 1,643,749
J. M. Leonard ........................... 157,299 2,426,263 22,999 1,311,863
(a) The table above does not reflect stock options to purchase 320,367 shares of Abbott common
stock, which were transferred in a transaction exempt from Section 16 of the Securities Exchange
Act of 1934 under Rule 16a-12.
(b) The table above does not reflect stock options to purchase 213,752 shares of Abbott common
stock, which were transferred in a transaction exempt from Section 16 of the Securities Exchange
Act of 1934 under Rule 16a-12.
PENSION BENEFITS
During 2012, the named executive officers participated in two Abbott-sponsored defined benefit
pension plans: the Abbott Laboratories Annuity Retirement Plan, a tax-qualified pension plan; and the
Abbott Laboratories Supplemental Pension Plan, a non-qualified supplemental pension plan. The
Supplemental Pension Plan also includes a benefit feature Abbott uses to attract executive officers who
are at the mid-point of their career. This feature provides an additional benefit to executive officers
who are mid-career hires that is less valuable to executive officers who have spent most of their career
at Abbott. AbbVie has assumed responsibility for providing these benefits to the named executive
officers, who transferred from Abbott to AbbVie as part of the business separation. Except as provided
in Abbott’s change in control agreements, Abbott does not have a policy granting extra years of
credited service under the plans. The change in control agreements are described beginning on page 43.
The compensation considered in determining the pensions payable to the named executive officers
is the compensation shown in the ‘‘Salary’’ and ‘‘Non-Equity Incentive Plan Compensation’’ columns of
the Summary Compensation Table on page 29.
Annuity Retirement Plan
The Annuity Retirement Plan covers most employees in the United States, age 21 or older, and
provides participants with a life annuity benefit at normal retirement equal to A plus the greater of B
or C below.
A. 1.10% of 5-year final average earnings multiplied by years of benefit service after 2003.
B. 1.65% of 5-year final average earnings multiplied by years of benefit service prior to 2004 (up
to 20); plus 1.50% of 5-year final average earnings multiplied by years of benefit service prior
to 2004 in excess of 20 (but no more than 15 additional years); less
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