Company: ABBV
Filing Date: 2025-03-10
Form Type: PRE 14A
Source: 0001558370-25-002603
Chunk: 9

Company: AbbVie Inc.
Filing Date: 2025-03-10
Form: PRE 14A
Chunk 9
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) as an initial benchmark for assessing compensation. The committee then takes into account the company’s overall performance against the financial, operating and strategic objectives that were established at the start of the performance period. Finally, specific pay determinations are made for each NEO based on individual performance against goals and contributions to the short- and long-term performance of the company. Key components and design of our executive compensation program: Three primary components make up AbbVie’s executive pay program: base salary, short-term incentives, and long-term incentives. The structure of each component is tailored to serve a specific function and purpose. The following is a summary of the key components of our compensation program.

| ​ | ​                     | ​ | ​       | ​ | ​                                                         | ​ | ​                                                                                                                                                                                                                                  | ​ |
| ​ | Element               | ​ | Type    | ​ | Primary                                                   
 Objective                                                 | ​ | Key Characteristics                                                                                                                                                                                                                | ​ |
| ​ | ​                     | ​ | ​       | ​ | ​                                                         | ​ | ​                                                                                                                                                                                                                                  | ​ |
| ​ | Base Salary           | ​ | Fixed   | ​ | Attract & retain top talent                               | ​ | Individual salaries are established relative to market median based on each NEO’s individual performance, skills, experience, and internal equity, as well as the company’s annual operating budget                                | ​ |
| ​ | ​                     | ​ | ​       | ​ | ​                                                         | ​ | ​                                                                                                                                                                                                                                  | ​ |
| ​ | Short-Term Incentives | ​ | At-Risk | ​ | Encourage achievement of company’s primary business goals | ​ | Plan utilizes non-GAAP financial goals as well as an assessment of individual performance against strategic objectives:— Platform revenue— Income before taxes— Operating margin— Return on assets— Strategic and leadership goals | ​ |
| ​ | ​                     | ​ | ​       | ​ | ​                                                         | ​ | ​                                                                                                                                                                                                                                  | ​ |
| ​ | Long-Term Incentives  | ​ | At-Risk | ​ | Align NEO interests with stockholders                     | ​ | Long-term incentive annual awards are granted in the form of:— Performance shares and performance-vested restricted stock units (80% of NEO’s LTI award)— Non-qualified stock options (20% of NEO’s LTI award)                     | ​ |
| ​ | ​                     | ​ | ​       | ​ | ​                                                         | ​ | ​                                                                                                                                                                                                                                  | ​ |

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