Note 10 Board of Directors compensation

The compensation levels of members of the Board of Directors were as follows:

(XLS:)

 

Board term
2011/2012

Board term
2010/2011

Function

(CHF)

(CHF)

Chairman of the Board

1,200,000

1,200,000

Member of the Board and Committee chairman

400,000

400,000

Member of the Board

300,000

300,000

Board compensation is payable in semi-annual installments in arrears. The first payment is made in November, for the period of Board membership from election at the Annual General Meeting to October of that year. The second payment is made in May of the following year for the period of Board membership from November to the end of that Board term.

Board members elect to receive either 50 percent or 100 percent of their compensation in ABB shares. The reference price for the shares to be delivered (and hence the calculation of the number of shares to be delivered) is the average closing price of the ABB share during a defined 30-day period which is different for each installment. The ABB shares are kept in a blocked account for three years after the date of original delivery and may only be disposed of earlier (with limited exception) if the respective person has left the Board of Directors.

The compensation amounts per individual Board member are listed in the table below:

(XLS:) ABB Ltd, Zurich – Compensation amounts per individual Board member

 

Paid in 2011

Paid in 2010

 

November Board term 2011/2012

May Board term 2010/2011

Total
compen-
sation
paid
2011(3),(4),(5)

November Board term 2010/2011

May Board term 2009/2010

 

Name/Function

Settled
in
cash(1)

Settled
in
shares –
number
of
shares
received(2)

Settled
in
cash(1)

Settled
in
shares –
number
of
shares
received(2)

Settled
in
cash(1)

Settled
in
shares –
number
of
shares
received(2)

Settled
in
cash(1)

Settled
in
shares –
number
of
shares
received(2)

Total
compen-
sation
paid
2010(4),(5)

 

(CHF)

 

(CHF)

 

(CHF)

(CHF)

 

(CHF)

 

(CHF)

(1)

Represents gross amounts paid, prior to deductions for social security, withholding tax, etc.

(2)

Number of shares per Board member is calculated based on net amount due after deductions for social security, withholding tax, etc.

(3)

For the 2011–2012 Board term, all members elected to receive 50% of their gross compensation in the form of ABB shares, except for Hubertus von Grünberg, Hans Ulrich Märki and Michel de Rosen who elected to receive 100%.

(4)

For the 2010–2011 Board term, all members elected to receive 50% of their gross compensation in the form of ABB shares, except for Hubertus von Grünberg and Hans Ulrich Märki who elected to receive 100%.

(5)

In addition to the Board remuneration stated in the above table, the Company paid in 2011 and 2010 CHF 213,122 and CHF 219,102, respectively, in employee social security payments.

(6)

Member of the Finance, Audit and Compliance Committee.

(7)

Member of the Governance, Nomination and Compensation Committee.

(8)

Bernd W. Voss did not stand for election to the Company’s board at the AGM in April 2011.

(9)

Ying Yeh was elected to the Company’s board at the AGM in April 2011.

Hubertus von Grünberg
Chairman of the Board

25,917

19,303

1,200,000

20,105

300,000

9,092

1,200,000

Roger Agnelli(6)
Member of the Board

75,000

3,196

75,000

2,388

300,000

75,000

2,492

75,000

2,259

300,000

Louis R. Hughes(6)
Member of the Board and beginning
with the 2011/2012 board term
Chairman of the Finance, Audit and Compliance Committee

100,000

4,272

75,000

2,388

350,000

75,000

2,492

75,000

2,259

300,000

Hans Ulrich Märki
Member of the Board and Chairman of the Governance, Nomination and Compensation Committee

11,746

8,757

400,000

9,124

8,264

400,000

Michel de Rosen(7)
Member of the Board

6,392

75,000

2,388

300,000

75,000

2,492

4,519

300,000

Michael Treschow(7)
Member of the Board

75,000

3,251

75,000

2,419

300,000

75,000

2,522

75,000

2,278

300,000

Bernd W. Voss(8)
Member of the Board and Chairman of the Finance, Audit and Compliance Committee until the 2011/2012 board term

100,000

3,222

200,000

100,000

3,358

100,000

3,035

400,000

Jacob Wallenberg(6)
Member of the Board

75,000

3,196

75,000

2,388

300,000

75,000

2,492

75,000

2,259

300,000

Ying Yeh(7),(9)
Member of the Board

75,000

3,197

150,000

Total

400,000

61,167

475,000

43,253

3,500,000

475,000

45,077

700,000

33,965

3,500,000

Board members do not receive pension benefits and are not eligible to participate in any of ABB’s employee incentive programs. No loans or guarantees were granted to Board members in 2011 and 2010. Except as disclosed herein, no payments were made to former Board members in 2011 and 2010.

Other than as disclosed herein, no members of the Board received any additional fees and remunerations for services rendered to ABB. Also, in 2011 ABB did not pay any additional fees or remuneration, other than on an arm’s length basis, to persons closely linked to a member of the Board for services rendered to ABB. A related party includes a spouse, children below the age of eighteen, legal or natural persons acting as a fiduciary and legal entities controlled by a member of the Board.

Financial review

© Copyright 2012 ABB.