Note 10 Board of Directors compensation

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

Download XLS (16 kB)

 

Board term
2012/2013

Board term
2011/2012

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:

Enlarge table
Download XLS (22 kB)

 

Paid in 2012

Paid in 2011

 

November
Board term 2012/2013

May
Board term 2011/2012

Total
compen-
sation
paid
2012(3),(4),(5)

November
Board term 2011/2012

May
Board term 2010/2011

 

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
2011(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 2012–2013 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%.

(4)

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%.

(5)

In addition to the Board remuneration stated in the above table, the Company paid in 2012 and 2011 CHF 211,008 and CHF 213,122 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

23,298

22,685

1,200,000

25,917

19,303

1,200,000

Roger Agnelli(6)
Member of the Board

75,000

2,873

75,000

2,807

300,000

75,000

3,196

75,000

2,388

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

3,840

100,000

3,751

400,000

100,000

4,272

75,000

2,388

350,000

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

10,649

10,364

400,000

11,746

8,757

400,000

Michel de Rosen(7)
Member of the Board

75,000

2,873

5,614

300,000

6,392

75,000

2,388

300,000

Michael Treschow(7)
Member of the Board

75,000

2,922

75,000

2,843

300,000

75,000

3,251

75,000

2,419

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

Jacob Wallenberg(6)
Member of the Board

75,000

2,873

75,000

2,807

300,000

75,000

3,196

75,000

2,388

300,000

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

75,000

2,905

75,000

2,807

300,000

75,000

3,197

150,000

Total

475,000

52,233

400,000

53,678

3,500,000

400,000

61,167

475,000

43,253

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 2012 and 2011. Except as disclosed herein, no payments were made to former Board members in 2012 and 2011.

Other than as disclosed herein, no members of the Board received any additional fees and remuneration for services rendered to ABB. Also, in 2012 ABB did not pay any additional fees or remuneration 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.