Form 4: AbbVie Director Edward J. Rapp Reports Acquisition of Stock Equivalent Units

Director Edward J. Rapp reports acquisition of AbbVie stock equivalent units through director fees credited to a grantor trust.

Summary

• On March 31, 2025, Edward J. Rapp, a director of AbbVie Inc., acquired 155 stock equivalent units.
• These units were obtained as director fees credited to a stock equivalent unit account under a grantor trust.
• The price per unit was $209.52.
• The stock equivalent units earn the same return as if the fees were invested in AbbVie stock and are generally paid in cash at age 65 or upon retirement from the board.
• Following the transaction, Rapp directly owns 27,361 stock equivalent units, which includes units acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a director increasing their stake in the company, which is generally viewed favorably, but it's a routine transaction.

Positives

• The acquisition of stock equivalent units demonstrates the director's continued investment in AbbVie's future.
• The dividend reinvestment feature further increases Rapp's stake in the company.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. It reflects a director's compensation and investment in the company's stock.

Comparison to Industry Standards

• Director compensation in the form of stock or stock equivalent units is a common practice among large pharmaceutical companies like AbbVie.
• Companies such as Johnson & Johnson and Pfizer also utilize similar compensation structures to align the interests of their directors with those of the shareholders.
• The specific amount and terms of these grants vary based on company size, performance, and individual director contributions.

Stakeholder Impact

• The transaction signals to shareholders that a director is invested in the company's success.

Key Dates

Keywords

AbbVie, Director, Stock Equivalent Units, Edward J. Rapp, Grantor Trust, Director Fees, Dividend Reinvestment