This Compensation report has been prepared in accordance with applicable regulations, including the Swiss Code of Obligations, the Swiss Ordinance against Excessive Remuneration in Listed Companies Limited by Shares, and the rules of the stock markets where ABB’s shares are listed in Switzerland, Sweden and the United States. The report also fully adheres to the Swiss Code of Best Practice of Corporate Governance.
Additional compensation information
In 2015, 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 the "Business relationships" section of the Corporate governance report, ABB did not pay any additional fees or compensation in 2015 to persons closely linked to a member of the Board or a member of the EC for services rendered to ABB.
Except as disclosed in this Compensation report, ABB did not make any payments in 2015 to former members of the Board or the EC in connection with such roles.
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, 2015.
Exhibit 25 shows the number of ABB shares held by each Board member as of December 31, 2015 and 2014. Except as described in this Exhibit, 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.
As of December 31, 2015, members of the EC held ABB 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 Exhibit 26. Their holdings as of December 31, 2014, are shown in Exhibit 27.
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 they held at ABB.
For a more detailed description of MIP, please refer to “Note 18 Share-based payment arrangements” to ABB’s Consolidated Financial Statements contained in the Financial review of ABB Group section of this Annual Report.
Furthermore, as of December 31, 2015, members of the EC held Warrant Appreciation Rights (WARs) and conditionally granted ABB shares under the performance components of the LTIP 2014 and 2013, which at the time of vesting will be settled in cash, as shown in Exhibit 28. Their equivalent holdings as of December 31, 2014, are shown in Exhibit 29.
Except as described in Exhibits 26-29, 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, 2015 and 2014.