Company: ABBV
Filing Date: 2025-03-24
Form Type: DEF 14A
Source: 0001558370-25-003537
Chunk: 30

Company: AbbVie Inc.
Filing Date: 2025-03-24
Form: DEF 14A
Chunk 30
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 Non-qualified stock options | ​ | Our Compensation                                                                                                            
 Philosophy                                                                                                                  |
| ​                                                                                                                                                                                                                                                                                                                                                                                                                              | ​ | ​                                                                                                                                                                                                     | ​ | ​                                                                                                             | ​ | Align executive interests with the drivers of stockholder returns and profitable growth                                     |
| ​                                                                                                                                                                                                                                                                                                                                                                                                                              | ​ | ​                                                                                                                                                                                                     | ​ | ​                                                                                                             | ​ | Support achievement of the company’s primary business goals to have a remarkable impact on patients’ lives                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                       |   |                                                                                                               |   | Attract and retain world-class executives whose talents and contributions sustain the growth in long-term stockholder value |

The compensation committee is dedicated to ensuring that a substantial portion of executive compensation is “at-risk” and variable. Generally, more than three-fourths of our NEOs’ total direct compensation is variable and directly affected by both the company’s and the NEO’s performance, as indicated below. The committee believes the use of non-GAAP metrics to measure company performance for incentive plan purposes is appropriate. The use of certain non-GAAP metrics aligns NEOs to performance objectives that are commonly used to evaluate the performance of the company, provide accountability, and avoid inappropriate windfalls or penalties due to factors outside of their control. Importantly, both the goals and the financial performance are presented on a consistent non-GAAP basis.

2025 Proxy Statement |39

| ​                      | ​ |
| EXECUTIVE COMPENSATION | ​ |

Executive Compensation Process COMMITMENT TO PERFORMANCE-BASED AWARDS As discussed above, the majority of AbbVie’s NEO pay is performance-based. Specific goals and targets are the foundation of our pay-for-performance process. Though quantitative metrics such as financial and operational results are a central part of our performance assessment, some goals such as leadership and progress against strategic and long-term objectives are difficult to measure using numeric or formulaic criteria. As such, the compensation committee also conducts a qualitative assessment of individual performance to ensure the overall assessment of performance and pay decisions are aligned with the company’s true performance over a period of time. A discussion of the decision-making criteria for each pay component follows. COMMITTEE PROCESS FOR SETTING TOTAL COMPENSATION Each February, the committee, with the assistance of its independent compensation consultant and AbbVie’s management team, determines pay levels for NEOs. The process starts with a consideration of compensation levels and the mix of compensation for comparable executives at companies in AbbVie’s Health Care Peer Group, which are listed below in the section captioned “