Form 4: AbbVie Director Susan E. Quaggin Reports Acquisition of Stock Equivalent Units

Director Susan E. Quaggin reports acquisition of AbbVie stock equivalent units as part of director fees.

Summary

• On June 30, 2024, Susan E. Quaggin, a director of AbbVie Inc., acquired 87 stock equivalent units.
• These units were obtained as part of director fees credited to a stock equivalent unit account under a grantor trust.
• The price of the stock equivalent units was $171.52.
• 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, Quaggin directly owns 236 stock equivalent units, which includes units acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a neutral to slightly positive sentiment due to alignment of director and shareholder interests.

Positives

• The acquisition of stock equivalent units aligns the director's interests with those of the shareholders.
• The dividend reinvestment feature allows for further accumulation of stock equivalent units.

Industry Context

Directors commonly receive stock or stock equivalent units as part of their compensation to align their interests with shareholders. This is a standard practice in publicly traded companies.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash and equity.
• Companies like Pfizer (PFE) and Johnson & Johnson (JNJ) also use stock awards and stock options as part of their director compensation plans.
• The specific amount and type of equity compensation vary based on company size, performance, and industry standards.

Stakeholder Impact

• The transaction aligns the director's interests with those of the shareholders, potentially fostering better corporate governance.

Key Dates