Other governance information

ABB Group organizational structure

ABB Ltd is the ultimate parent company of the ABB Group. Its sole shareholding is in ABB Asea Brown Boveri Ltd which directly or indirectly owns the other companies in the ABB Group. The table in the appendix to this Corporate governance report sets forth, as of December 31, 2016, the name, place of incorporation, ownership interest and share capital of the significant direct and indirect subsidiaries of ABB Ltd, Switzerland. ABB’s operational group structure is described in the “Financial review of ABB Group” section of this Annual Report under “Operating and financial review and prospects – Organizational structure”.

Management contracts

There are no management contracts between ABB and companies or natural persons not belonging to the ABB Group.

Change of control clauses

Board members, Executive Committee members, and other members of senior management do not receive any special benefits in the event of a change of control. However, the conditional grants under the Long Term Incentive Plan and the Management Incentive Plan may be subject to accelerated vesting in the event of a change of control.

Employee participation programs

In order to align its employees’ interests with the business goals and financial results of the company, ABB operates a number of incentive plans, linked to ABB’s shares, such as the Employee Share Acquisition Plan, the Management Incentive Plan and the Long Term Incentive Plan. For a more detailed description of these incentive plans, 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.

ABB’s policy on tax

ABB acts as a responsible global corporate tax citizen in compliance with applicable tax law and regulations. It is ABB’s policy to provide transparent and comprehensive information to tax administrations in order to facilitate their understanding of the tax-related decisions taken by ABB. Further information regarding our tax policy can be accessed at www.abb.com/sustainability

Governance differences from NYSE Standards

According to the New York Stock Exchange’s corporate governance standards (the Standards), ABB is required to disclose significant ways in which its corporate governance practices differ from the Standards. ABB has reviewed the Standards and concluded that its corporate governance practices are generally consistent with the Standards, with the following significant exceptions:

  • Swiss law requires that the external auditors be elected by the shareholders at the Annual General Meeting rather than by the audit committee or the board of directors.
  • The Standards require that all equity compensation plans and material revisions thereto be approved by the shareholders. Consistent with Swiss law such matters are decided by our Board. However, the shareholders decide about the creation of new share capital that can be used in connection with equity compensation plans.
  • Swiss law requires that the members of the compensation committee are elected by the shareholders rather than appointed by our Board.
  • Swiss law requires shareholders to approve the maximum aggregate Board compensation and the maximum aggregate Executive Committee compensation.

Information policy

ABB, as a publicly traded company, is committed to communicating in a timely and consistent way to shareholders, potential investors, financial analysts, customers, suppliers, the media and other interested parties. ABB is required to disseminate material information pertaining to its businesses in a manner that complies with its obligations under the rules of the stock exchanges where its shares are listed and traded.

ABB publishes an annual report that provides audited financial statements and information about ABB including our business results, strategy, products and services, corporate governance and executive compensation. ABB also submits an annual report on Form 20-F to the SEC. In addition, ABB publishes its results on a quarterly basis as press releases, distributed pursuant to the rules and regulations of the stock exchanges on which its shares are listed and traded. Press releases relating to financial results and material events are also filed with the SEC on Form 6-K. An archive containing Annual Reports, Form 20-F reports, quarterly results releases and related presentations can be found in the “Financial results and presentations” section at www.abb.com/investorrelations. The quarterly results press releases contain unaudited financial information prepared in accordance with or reconciled to U.S. GAAP. To subscribe to important press releases, please click on the “Contacts and Services” and choose “Subscribe to updates” at www.abb.com/investorrelations. Ad hoc notices can also be found in the press releases section at www.abb.com/news

ABB’s official means of communication is the Swiss Official Gazette of Commerce (www.shab.ch). The invitation to the company’s Annual General Meeting is sent to registered shareholders by mail.

Inquiries may also be made to ABB Investor Relations:

Affolternstrasse 44
CH-8050 Zurich, Switzerland
Telephone:+41 43 317 7111
Fax:+41 44 311 9817
E-mail: investorrelations@ch.abb.com

ABB’s website is: www.abb.com

Further information on corporate governance

The list below contains references to additional information concerning the corporate governance of ABB, which can be accessed at www.abb.com/about/corporate-governance

  • Articles of Incorporation
  • ABB Ltd Board Regulations & Corporate Governance Guidelines
  • Regulations of the Finance, Audit and Compliance Committee
  • Regulations of the Governance and Nomination Committee
  • Regulations of the Compensation Committee
  • Related Party Transaction Policy
  • ABB Code of Conduct
  • Addendum to the ABB Code of Conduct for Members of the Board of Directors and the Executive Committee
  • Comparison of ABB’s corporate governance practices to the New York Stock Exchange rules
  • Summary of differences of shareholder rights under Swedish and Swiss Law applicable to ABB
  • CVs of the Board members
  • CVs of the Executive Committee members

Appendix – ABB Ltd’s significant subsidiaries

Company name/location

Country

ABB
interest %

Share
capital in thousands

Currency

(1)

Shares without par value.

(2)

Company consolidated as ABB exercises full management control.

SARPI - Société Algérienne pour la réalisation de projets industriels, Alger

Algeria

50.00

814,500

DZD

ABB S.A., Buenos Aires

Argentina

100.00

278,860

ARS

ABB Australia Pty Limited, Moorebank, NSW

Australia

100.00

131,218

AUD

ABB Group Investment Management Pty. Ltd., Moorebank, NSW

Australia

100.00

355,312

AUD

ABB N.V., Zaventem

Belgium

100.00

13,290

EUR

ABB Ltda., Osasco

Brazil

100.00

689,793

BRL

ABB Bulgaria EOOD, Sofia

Bulgaria

100.00

65,110

BGN

ABB Canada Holding Limited Partnership, Saint-Laurent, Quebec

Canada

100.00

CAD

ABB Inc., Saint-Laurent, Quebec

Canada

100.00

(1)

CAD

Thomas & Betts Limited, Saint-Jean-sur-Richelieu, Quebec

Canada

100.00

(1)

CAD

ABB Beijing Drive Systems Co. Ltd., Beijing

China

90.00

5,000

USD

ABB (China) Ltd., Beijing

China

100.00

310,000

USD

ABB Engineering (Shanghai) Ltd., Shanghai

China

100.00

40,000

USD

ABB High Voltage Switchgear Co. Ltd., Beijing

China

60.00

11,400

USD

ABB Xiamen Low Voltage Equipment Co. Ltd., Xiamen

China

100.00

15,800

USD

ABB Xiamen Switchgear Co. Ltd., Xiamen

China

64.30

23,500

USD

ABB Xinhui Low Voltage Switchgear Co. Ltd., Xinhui

China

90.00

6,200

USD

ABB s.r.o., Prague

Czech Republic

100.00

400,000

CZK

ABB A/S, Skovlunde

Denmark

100.00

100,000

DKK

ABB for Electrical Industries (ABB ARAB) S.A.E., Cairo

Egypt

100.00

353,479

EGP

Asea Brown Boveri S.A.E., Cairo

Egypt

100.00

166,000

USD

ABB AS, Jüri

Estonia

100.00

1,663

EUR

ABB Oy, Helsinki

Finland

100.00

10,003

EUR

ABB France, Cergy Pontoise

France

99.83

25,778

EUR

ABB S.A., Cergy Pontoise

France

100.00

45,921

EUR

ABB AG, Mannheim

Germany

100.00

167500

EUR

ABB Automation GmbH, Mannheim

Germany

100.00

15,000

EUR

ABB Automation Products GmbH, Ladenburg

Germany

100.00

10,620

EUR

ABB Beteiligungs- und Verwaltungsges. mbH, Mannheim

Germany

100.00

61,355

EUR

ABB Stotz-Kontakt GmbH, Heidelberg

Germany

100.00

7,500

EUR

Busch-Jaeger Elektro GmbH, Lüdenscheid

Germany

100.00

1,535

EUR

ABB Holding Ltd., Hong Kong

Hong Kong

100.00

27,887

HKD

ABB (Hong Kong) Ltd., Hong Kong

Hong Kong

100.00

20,000

HKD

ABB Global Industries and Services Private Limited, Bangalore

India

100.00

408,930

INR

ABB India Limited, Bangalore

India

75.00

423,817

INR

ABB S.p.A., Milan

Italy

100.00

110,000

EUR

Power-One Italy S.p.A., Terranuova Bracciolini (AR)

Italy

100.00

22,000

EUR

ABB K.K., Tokyo

Japan

100.00

1,000,000

JPY

ABB Ltd., Seoul

Korea,
Republic of

100.00

18,670,000

KRW

ABB Holdings Sdn. Bhd., Subang Jaya

Malaysia

100.00

4,490

MYR

ABB Malaysia Sdn. Bhd., Subang Jaya

Malaysia

100.00

3,500

MYR

ABB Mexico S.A. de C.V., San Luis Potosi SLP

Mexico

100.00

633,368

MXN

Asea Brown Boveri S.A. de C.V., San Luis Potosi SLP

Mexico

100.00

667,686

MXN

ABB B.V., Rotterdam

Netherlands

100.00

9,200

EUR

ABB Capital B.V., Rotterdam

Netherlands

100.00

1,000

USD

ABB Finance B.V., Rotterdam

Netherlands

100.00

20

EUR

ABB Holdings B.V., Rotterdam

Netherlands

100.00

119

EUR

ABB Investments B.V., Rotterdam

Netherlands

100.00

100

EUR

ABB AS, Billingstad

Norway

100.00

250,000

NOK

ABB Holding AS, Billingstad

Norway

100.00

240,000

NOK

ABB Sp. z o.o., Warsaw

Poland

99.92

350,656

PLN

ABB Ltd., Moscow

Russian Federation

100.00

5,686

RUB

ABB Contracting Company Ltd., Riyadh

Saudi Arabia

65.00

40,000

SAR

ABB Electrical Industries Ltd., Riyadh

Saudi Arabia

65.00

168,750

SAR

ABB Holdings Pte. Ltd., Singapore

Singapore

100.00

32,797

SGD

ABB Pte. Ltd., Singapore

Singapore

100.00

28,842

SGD

ABB Holdings (Pty) Ltd., Longmeadow

South Africa

100.00

4,050

ZAR

ABB South Africa (Pty) Ltd., Longmeadow

South Africa

74.91

1

ZAR

Asea Brown Boveri S.A., Madrid

Spain

100.00

33,318

EUR

ABB AB, Västerås

Sweden

100.00

400,000

SEK

ABB Norden Holding AB, Västerås

Sweden

100.00

2,344,783

SEK

ABB Asea Brown Boveri Ltd, Zurich

Switzerland

100.00

2,768,000

CHF

ABB Information Systems Ltd., Zurich

Switzerland

100.00

500

CHF

ABB Investment Holding GmbH, Zurich

Switzerland

100.00

92,054

CHF

ABB Management Services Ltd., Zurich

Switzerland

100.00

571

CHF

ABB Schweiz AG, Baden

Switzerland

100.00

55,000

CHF

ABB Turbo Systems AG, Baden

Switzerland

100.00

10,000

CHF

ABB LIMITED, Bangkok

Thailand

100.00

1,034,000

THB

ABB Elektrik Sanayi A.S., Istanbul

Turkey

99.95

13,410

TRY

ABB Industries (L.L.C.), Dubai United Arab Emirates

 

49.00(2)

5,000

AED

ABB Holdings Limited, Warrington

United Kingdom

100.00

226,014

GBP

ABB Limited, Warrington

United Kingdom

100.00

120,000

GBP

ABB Finance (USA) Inc., Wilmington, DE

United States

100.00

1

USD

ABB Holdings Inc., Cary, NC

United States

100.00

2

USD

ABB Inc., Cary, NC

United States

100.00

1

USD

ABB Treasury Center (USA), Inc., Wilmington, DE

United States

100.00

1

USD

Baldor Electric Company, Fort Smith, AR

United States

100.00

USD

Edison Holding Corporation, Wilmington, DE

United States

100.00

10

USD

Thomas & Betts Corporation, Knoxville, TN

United States

100.00

1

USD

Verdi Holding Corporation, Wilmington, DE

United States

100.00

USD