Exhibit 10.1


 


Summary of
2009 Terms of Employment for Named Executive Officers


 


Salary


 


	
  Officer

  	
   

  	
  Salary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Christopher B. Begley, Chairman and Chief
  Executive Officer

  	
   

  	
  $

  	
  1,050,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Terrence C. Kearney, Chief Operating
  Officer

  	
   

  	
  625,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sumant Ramachandra, Senior Vice President
  and Chief Scientific Officer

  	
   

  	
  475,000

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  	
   

  	
  445,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Brian J. Smith, Senior Vice President,
  General Counsel and Secretary

  	
   

  	
  425,000

  	
   

  
					



 


The salary for each officer is the same as their prior year’s salary
(except for Dr. Ramachandra, who joined Hospira on July 7,
2008).  The prior year’s salary took
effect on March 24, 2008.


 


Annual Cash Incentive


 


Each is a participant in the Hospira Inc. 2004 Performance Incentive
Plan, which is filed as Exhibit 10.9 to Hospira’s Annual Report on Form 10-K
for the year ended December 31, 2007 (the “2007 Form 10-K”). 
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 will consider Hospira’s adjusted net income, net sales, cash
flows and corporate well-being as factors in exercising such discretion and
determining actual awards payable under such plan for 2009 performance.


 


Equity


 


Each officer is eligible to receive option and performance share awards
under the Hospira 2004 Long-Term Stock Incentive Plan, which is filed as Exhibit 10.8
to Hospira’s 2007 Form 10-K.   Awards are made in the discretion
of the compensation committee of Hospira’s board of directors.


 


Change in Control and Severance Pay


 


Each officer is party to a change-in-control agreement in the forms
filed as Exhibit 10.12 (for each officer other than Mr. Werner and Dr. Ramachandra)
to Hospira’s Quarterly Report on Form 10-Q for the quarter ended March 31,
2004.  The form for Mr. Werner was
filed as Exhibit 10.1 to Hospira’s Current Report on Form 8-K filed
on August 11, 2006.  These agreements were amended in the forms filed
as Exhibit 10.12(a)(i) (for Mr. Begley, Mr. Kearney and Mr. Smith)  and Exhibit 10.12(b)(i) (for Mr. Werner)
to Hospira’s 2007 Form 10-K.  The
form for Dr. Ramachandra is filed as Exhibit 10.6(c) to this
2008 Form 10-K.


 


All of the named executive officers, except the chairman and chief
executive officer, are covered by Hospira’s Corporate Officer Severance Plan,
which provides severance pay and benefits to corporate officers and is filed as
Exhibit 10.10 to this 2008 Form 10-K.


 


Non-qualified Deferred Compensation Plan


 


Each officer is eligible to participate in Hospira’s Non-Qualified
Savings and Investment Plan, a non-qualified deferred compensation plan, which
is filed as Exhibit 4 to Hospira’s Registration Statement on Form S-8,
filed on August 25, 2008.


 


A description of the above-described items is included in Hospira’s
proxy statement for the 2008 Annual Meeting of Shareholders.