Note 10 Board of Directors compensation

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

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Board term 2013/2014

Board term 2012/2013

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:

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Paid in 2013

Paid in 2012

 

November
Board term 2013–2014

May
Board term 2012–2013

Total
compen-
sation
paid
2013(3)(5)

November
Board term 2012–2013

May
Board term 2011–2012

 

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
2012(3)(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 the net amount due after deductions for social security, withholding tax etc.

(3)

For the Board terms 2013–2014 and 2012–2013, 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 2013 and 2012, CHF 147,290 and CHF 211,008, respectively, in employee social security payments.

(6)

Member of the Finance, Audit and Compliance Committee

(7)

Member of the Governance, Nomination and Compensation Committee

Hubertus von Grünberg
Chairman of the Board

19,616

19,739

1,200,000

23,298

22,685

1,200,000

Roger Agnelli(6)
Member of the Board

75,000

2,419

75,000

2,442

300,000

75,000

2,873

75,000

2,807

300,000

Louis R. Hughes
Member of the Board and Chairman of the Finance, Audit and Compliance Committee

100,000

3,233

100,000

3,264

400,000

100,000

3,840

100,000

3,751

400,000

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

8,966

9,018

400,000

10,649

10,364

400,000

Michel de Rosen(7)
Member of the Board

75,000

2,629

75,000

2,646

300,000

75,000

2,873

5,614

300,000

Michael Treschow(7)
Member of the Board

75,000

2,629

75,000

2,647

300,000

75,000

2,922

75,000

2,843

300,000

Jacob Wallenberg(6)
Member of the Board

75,000

2,629

75,000

2,647

300,000

75,000

2,873

75,000

2,807

300,000

Ying Yeh(7)
Member of the Board

75,000

2,460

75,000

2,474

300,000

75,000

2,905

75,000

2,807

300,000

Total

475,000

44,581

475,000

44,877

3,500,000

475,000

52,233

400,000

53,678

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 2013 and 2012. Except as disclosed herein, no payments were made to former Board members in 2013 and 2012.

Other than as disclosed herein, no members of the Board received any additional fees and remuneration for services rendered to ABB. Also, in 2013 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.