AbbVie 2013 Annual Report Download - page 139

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12MAR201400051337
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
Executive Summary
The Compensation Committee (‘‘Committee’’) believes performance must always be evaluated
compared to the goals of the business and assessed in the context of market and business conditions.
2013 was a very successful year for AbbVie financially, operationally and in its pipeline
development efforts. AbbVie’s stock price performance in 2013 contributed to a 60.7 percent annual
total stockholder return, compared to 29.7 percent for the Dow Jones Industrial Average and
32.4 percent for the Standard & Poor’s 500 Index over the same time period.
AbbVie achieved sales of $18.8 billion in 2013, up nearly 3 percent globally, excluding roughly
1 percent negative impact from foreign exchange. Sales growth was driven by double-digit growth from
HUMIRA, Synthroid, Creon and Duodopa, and was achieved despite the loss of exclusivity and generic
competition in the lipid franchise. AbbVie exceeded its original EPS guidance range, demonstrating the
strength of the company’s business.
In addition to achieving its financial goals, AbbVie completed a successful transition to operating
as an independent company, and delivered operational efficiencies and improvements in gross margin.
Further, AbbVie continued to execute on its commercial, regulatory and clinical objectives, including
completion of its Phase III interferon-free HCV program for genotype one patients. AbbVie also made
significant additional progress in advancing its pipeline, including: initiation of a large, global Phase III
registrational study of Atrasentan for the treatment of diabetic kidney disease; initiation of a second
registrational study of Elagolix for the treatment of endometriosis; and initiation of a large, Phase II,
potentially registrational trial of ABT-199 in relapsed/refractory chronic lymphocytic leukemia patients
with the 17P deletion. AbbVie also expanded its pipeline through partnering activities, adding two new
assets to its mid-stage immunology pipeline, expanding an existing partnership to include an additional
indication and entering into a global alliance to discover and develop novel therapies for cystic fibrosis.
60.7%
29.7%
32.4%
0%
10%
20%
30%
40%
50%
60%
70%
AbbVie 2013 DJIA 2013 S&P 500 2013
1‐Year Total Stockholder Return
16