Compensation of former EC members

In 2017, certain former EC members received contractual compensation for the period after leaving the EC, as shown in Exhibit 23, footnote (6).

Exhibit 23: EC compensation 2017 (audited)

Exhibit 23: EC compensation 2017 (audited)

 

Cash compensation

 

 

 

Name

Base salary

Short-term variable compen­sation(1)

Pension benefits

Other benefits(2)

2017 Total
cash-based compen­sation(3)

Estimated value of share-based grants under the LTIP in 2017(4)

Estimated value of replace­ment share grant(5)

2017 Total
(incl. conditional share-based grants)(6)

 

CHF

CHF

CHF

CHF

CHF

CHF

CHF

CHF

(1)

Represents accrued short-term variable compensation for the year 2017 for all current EC members, which will be paid in 2018, after the publication of ABB’s audited consolidated financial statements. Short-term variable compensation is linked to the objectives defined in each EC member’s scorecard. Upon full achievement of these objectives, the short-term variable compensation of the CEO corresponds to 150 percent of his base salary, while for each other EC member it represents 100 percent of their respective base salary. Bernhard Jucker and Eric Elzvik both received a pro-rata short-term variable compensation payment for their period of service as an EC member, in accordance with the contractual obligations of ABB.

(2)

Other benefits comprise payments related to social security, health insurance, children’s education, transportation, tax advice and certain other items.

(3)

Prepared on an accruals basis.

(4)

On the day of vesting (June 13, 2020), the value of the share-based awards granted under the LTIP may vary from the above amounts due to changes in ABB’s share price and the outcome of the performance parameters. The LTIP is also subject to service conditions. The estimated values of the share-based grants are computed using a Monte Carlo simulation and the price of the ABB shares on the grant date, adjusted for expected foregone dividends during the vesting period.

(5)

Timo Ihamuotila received a replacement grant of 119,200 shares for foregone benefits from his previous employer, having a grant date fair value of CHF 2,553,435. Of the total, 42,572 shares will vest on April 1, 2019, while 76,628 shares will vest on April 1, 2020.

(6)

In addition to the total compensation of EC members, Eric Elzvik received CHF 1,389,860 representing contractual obligations of ABB for the period April–October 2017. Payments totaling CHF 113,273 were made in 2017 on behalf of certain other former EC members for the coverage of social security premium obligations and tax advice.

(7)

The increase in pension benefits is the result of a review of the EC’s pension arrangements during 2015.

(8)

Frank Duggan received 20 percent of his base salary in AED and 80 percent in EUR. The company purchased EUR with AED to meet this obligation. All AED amounts were converted into Swiss francs using a rate of CHF 0.2660876 per AED.

(9)

Greg Scheu received 100 percent of his base salary in USD. All USD amounts were converted into Swiss francs using a rate of CHF 0.9773 per USD.

(10)

Chunyuan Gu received 100 percent of his base salary in CNY. All CNY amounts were converted into Swiss francs using a rate of CHF 0.149957 per CNY.

Ulrich Spiesshofer

1,679,176

2,413,763

626,074

916,140

5,635,153

3,671,675

9,306,828

Timo Ihamuotila (EC member as of April 1, 2017)(5)

690,009

655,278

362,201

473,848

2,181,336

998,965

2,553,435

5,733,736

Jean-Christophe Deslarzes(7)

936,674

1,007,680

500,652

500,493

2,945,499

1,103,374

4,048,873

Diane de Saint Victor

1,000,001

1,005,000

295,325

279,321

2,579,647

979,231

3,558,878

Frank Duggan(8)

664,042

651,425

348,494

433,783

2,097,744

852,386

2,950,130

Greg Scheu(9)

801,386

648,322

265,877

94,270

1,809,855

800,177

2,610,032

Chunyuan Gu (EC member as of July 1, 2017)(10)

374,893

385,765

131,563

203,488

1,095,709

743,963

1,839,672

Sami Atiya

716,673

686,160

435,786

416,816

2,255,435

845,147

3,100,582

Tarak Mehta

860,004

823,880

467,597

578,054

2,729,535

842,145

3,571,680

Claudio Facchin

805,006

680,400

456,410

474,153

2,415,969

950,768

3,366,737

Peter Terwiesch(7)

764,173

714,560

440,272

337,623

2,256,628

903,833

3,160,461

Eric Elzvik (EC member until March 31, 2017)

212,502

212,500

69,847

26,789

521,638

 

521,638

Bernhard Jucker (EC member until June 30, 2017)

520,006

525,000

277,663

399,154

1,721,823

1,140,137

2,861,960

Total Executive Committee members

10,024,545

10,409,733

4,677,761

5,133,932

30,245,971

13,831,801

2,553,435

46,631,207