Additional information about 2014

Additional compensation information

In 2014, ABB did not pay any fees or compensation to the members of the Board or the EC for services rendered to ABB other than those disclosed above. Except as disclosed in section Business relationships of the Corporate governance report, ABB did not pay any additional fees or compensation in 2014 to persons closely linked to a member of the Board or the EC for services rendered to ABB.

Except as disclosed in this Compensation report, ABB did not make any payments in 2014 to former members of the Board or the EC in connection with such roles.

Following the spirit of ABB’s compensation policy, none of ABB’s Board members, EC members or members of senior management receives “golden parachutes” or other special benefits in the event of a change of control. No loans or guarantees were granted to members of the Board or the EC in 2014.

Holdings of ABB shares

The members of the Board and EC owned less than 1 percent of ABB’s total shares outstanding as of December 31, 2014.

Table 16 shows the number of ABB shares held by each Board member as of December 31, 2014 and 2013. Except as described in this table, no member of the Board and no person closely linked to a member of the Board held any shares of ABB or options in ABB shares.

No additional fees and compensation;
Board and EC owned <1% of ABB’s shares

In 2014, ABB did not pay any additional fees or compensation to members of the Board or EC, to people closely linked with them, or to former members of the Board or EC in connection with such role. The members of the Board and EC owned less than 1 percent of ABB’s shares at the end of 2014.

As of December 31, 2014, members of the EC held ABB shares (or American Depositary Shares – ADS – representing such shares), the conditional rights to receive shares under the LTIP, options (either vested or unvested as indicated) under the Management Incentive Plan (MIP), and unvested shares in respect of other compensation arrangements, as shown in Table 17. Their holdings as of December 31, 2013, are shown in Table 18.

Furthermore, as of December 31, 2014, members of the EC held Warrant Appreciation Rights (WARs) and conditionally granted ABB shares under the performance component of the LTIP 2014, 2013 and 2012, which at the time of vesting will be settled in cash, as shown in Table 19. Their equivalent holdings as of December 31, 2013, are shown in Table 20.

Members of the EC cannot participate in the MIP. Any MIP instruments held by EC members were awarded to them as part of the compensation they received in earlier roles that they held in ABB.

Except as described in tables 17–20, no member of the EC and no person closely linked to a member of the EC held any shares of ABB or options on ABB shares as of December 31, 2014 and 2013.