Board Justification

Abbott and its Compensation Committee have designed a compensation program that balances short- and long-term objectives to focus our executives on actions that create value today, while building for sustainable future success. Approximately 87% of our pay is performance-based, directly tying a significant portion of executive compensation to Company performance and shareholder returns. Our compensation program is market-based (to ensure our ability to attract and retain talented executives) and produces compensation outcomes that are performance-based (to incent the achievement of profitable growth that increases shareholder value).

Board Justification

The annual incentive plan is formula driven based on financial, strategic, talent and succession results. Officer financial goals are based on adjusted financial measures that reflect the true results of our ongoing operations and are set based on the expected market growth of the businesses in the markets in which we compete.

Board Justification

Earnings on Non-Qualified Defined Contribution Plans (net of the reportable interest included in footnote 5) R. B. Ford: $536,731 / $153,521 / $240,102; P. P. Boudreau: $627 / $216; H. L. Allen: $460,106 / $149,665 / $246,845; L. D. Earnhardt: $70,652 / $18,159; D. G. Salvadori: $67,546 / $17,270 / $24,607; and R. E. Funck, Jr.: $500,593 / $164,510 / $268,399.

Board Justification

These are the restricted shares that remained outstanding and unvested on December 31, 2024, from an award made on February 18, 2022. The award has a 3-year term with no more than one-third of the original award vesting in any one year upon Abbott reaching a minimum return on equity target, measured at the end of the relevant year. In 2024, Abbott reached its minimum return on equity target and these shares vested on February 28, 2025.