Compensation & Benefits
Abbott's compensation philosophy is to pay for performance. Our compensation is intended to compare favorably with the pay programs of other leading health care companies, as well as with other companies of similar size and financial performance, outside of our industry, in global markets where we compete for employees. Our total rewards program combines elements of base pay with a broad array of benefits and opportunities for growth and development. While our total compensation targets reference the median of other leading companies, average individual pay varies based on employee competency, experience and performance. This pay-for-performance philosophy, combined with internal and external analysis and reviews, helps drive our total compensation strategy.
Our executive compensation program is designed to help align our business strategy, values and management interests with those of our shareholders. To achieve these objectives, Abbott has set the following guiding principles for our compensation programs:
- Base salaries are competitive in the markets in which we compete for employees.
- Incentive plans are designed to balance short- and long-term financial and strategic objectives that build shareholder value and reward overall company and individual performance.
- Total compensation for Abbott executives should reflect that of companies performing at levels equivalent to Abbott.
- Incentive compensation (both annual and long-term) is managed in accordance with Abbott's pay-for-performance philosophy. Individual awards are tied to business and individual results to create incentives for superior performance.
- Total compensation should encourage behavior that is consistent with the ethical values established in Abbott's Code of Business Conduct.
