Executive Committee compensation

Policy and principles

ABB’s compensation system reflects the commitment to attract, motivate and retain people with the talent necessary to strengthen ABB’s position as a pioneering technology leader in power grids, electrification products, industrial automation and robotics and motion, serving customers in utilities, industry and transport & infrastructure globally.

The compensation system is designed to provide competitive compensation and to encourage executives and employees to deliver outstanding results and create sustainable shareholder value without taking excessive risks. The compensation system balances:

  • fixed and variable compensation elements;
  • short-term and long-term incentives;
  • the recognition of Group and individual performance.

ABB continues to increase the performance orientation of its compensation system to better align it to the Company’s strategy by having performance metrics that support the development of earnings per share (EPS) and cash return on invested capital (CROI).