Exhibit 10.1


 


Summary of 2010 Terms of Employment
for Named Executive Officers


 


Salary


 


	
  Officer

  	
   

  	
  Salary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Christopher B. Begley, Chairman and Chief Executive Officer

  	
   

  	
  $

  	
  1,100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Terrence C. Kearney, Chief Operating Officer

  	
   

  	
  645,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sumant Ramachandra, Senior Vice President and Chief Scientific
  Officer

  	
   

  	
  489,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thomas E. Werner, Senior Vice President, Finance and Chief
  Financial Officer

  	
   

  	
  445,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ronald Squarer, Chief Commercial Officer

  	
   

  	
  400,000

  	
   

  
					



 


The salary for
each officer took effect on April 5, 2010. 
The prior year’s salary for each officer was $1,050,000 for
Mr. Begley, $625,000 for Mr. Kearney, $475,000 for Dr. Ramachandra,
$445,000 for Mr. Werner, and $380,000 for Mr. Squarer.


 


Annual
Cash Incentive


 


Each officer is a
participant in the Hospira Inc. 2004 Performance Incentive Plan, which is filed
as Exhibit 10.4 for the Hospira, Inc. Annual Report on Form 10-K
for the year ended December 31, 2009.  The plan provides for a base
award equal to 2.0% of Hospira’s earnings before interest, taxes, depreciation
and amortization for the chief executive officer, 1.5% for the chief operating
officer and 1.0% for the other named executive officers.  The compensation
committee of Hospira’s board of directors has discretion to reduce, but not
increase, the award from the base award.  The committee may consider
Hospira’s adjusted net income, net sales, cash flows or corporate well-being as
factors in exercising such discretion and determining actual awards payable
under such plan.


 


Equity


 


Each officer is
eligible to receive option and performance share awards under the Hospira 2004
Long-Term Stock Incentive Plan, as amended which is filed as Exhibit A to the
Hospira Inc. Definitive Proxy Statement on Schedule 14A filed with the SEC on March 30,
2009.   Awards are made at the discretion of the compensation
committee of Hospira’s board of directors.


 


Change
in Control and Severance Pay


 


Each officer is a
party to a change-in-control agreement in the form filed with the SEC and shown
as an exhibit in the exhibit list to the Form 10-K for the year ended
December 31, 2009.


 


All of the named
executive officers, except the chairman and chief executive officer, are
covered by the Hospira Corporate Officer Severance Plan, which provides
severance pay and benefits to corporate officers and is filed as Exhibit 10.3
to Hospira’s Current Report on Form 8-K filed on December 14, 2009.


 


Non-qualified
Deferred Compensation Plan


 


Each officer is
eligible to participate in the Hospira Non-Qualified Savings and Investment
Plan, a non-qualified deferred compensation plan, which is filed as Exhibit 10.2
to Hospira’s Current Report on Form 8-K filed on December 14, 2009.  A description of the above-described items is
included in Hospira’s proxy statement for the 2010 Annual Meeting of
Shareholders.