AbbVie 2013 Annual Report Download - page 170

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While this vote is advisory and non-binding, the board of directors and the compensation
committee value the opinion of the stockholders and will review the voting results and take them into
account when future compensation decisions are made.
Accordingly, the board of directors recommends that you vote FOR the approval of the named
executive officers’ compensation.
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.
ADDITIONAL INFORMATION
Section 16(a) Beneficial Ownership Reporting Compliance
AbbVie believes that during 2013 its executive officers and directors timely complied with all filing
requirements under Section 16(a) of the Securities Exchange Act of 1934.
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.
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