This excerpt taken from the EYE 8-K filed Jan 13, 2009.
Beginning in 2010, you will be eligible to receive, on the same basis as other similarly situated officers of Abbott, long-term incentives, as determined from time to time by Abbott. Your receipt of Abbotts long-term incentives will be governed by the terms of Abbotts Incentive Stock Program.
This excerpt taken from the EYE DEF 14A filed Apr 20, 2006.
Our stockholders approved the 2005 Incentive Compensation Plan in May 2005. Our long-term incentives have historically been in the form of stock option awards. Our plan provides that restricted stock may also be granted on a selected basis to attract, retain and motivate key executives critical to our long-term success. In 2005, we began issuing restricted stock and restricted stock units to non-executive employees. In addition, performance units and performance shares have been granted to further align executive compensation with our financial success. The objective is to provide rewards to executives based upon the creation of incremental stockholder value.
In 2005, we based the size of stock option grants to executive officers on competitive practices of comparator companies, with adjustments made based on individual factors such as the executives performance in the prior year and the executives potential for continued sustained contributions to our success. In order to preserve the linkage between the interests of executives and those of stockholders, the executives are expected to establish a significant level of direct ownership in accordance with our stock ownership guidelines. We made awards of nonqualified stock options to the following named executive officers in 2005: Mr. Meier (80,000 options), Dr. Heidrich (45,000 options), Mr. Trenary (50,000 options), and Ms. Rady (45,000 options).
For the executive officers, these grants were targeted at or near the 50th percentile of the market. In May 2005, we also provided an opportunity for the executive officers to earn additional equity awards in the form of restricted stock or restricted stock units based on AMOs performance versus an identified group of comparable companies for total stockholder return above the 50th percentile for the calendar year of 2005. The maximum dollar values of these 2005 performance awards (if we achieved 75th percentile total shareholder return) were as follows: Mr. Meier ($240,000), Dr. Heidrich ($220,000), Mr. Trenary ($220,000) and Ms. Rady ($200,000). In February 2006, the committee determined that AMOs total shareholder return did not merit any grants of restricted shares under the 2005 performance awards. At this time, we established targets for 2006 performance awards to the executive officers based on total shareholder return for the 2005-2006 timeframe in excess of the 50th percentile of the identified group of comparable companies. The maximum dollar values of these 2006 performance awards for the named executive officers (if we achieve the 75th percentile total shareholder return) are as follows: Mr. Meier ($400,000), Dr. Heidrich ($200,000), Mr. Trenary ($220,000) and Ms. Rady ($210,000).