ABB Board of Directors reassesses benefits of former CEOs

Zurich, Switzerland, February 13, 2002 – The Board of Directors of ABB Ltd said today it is reassessing the pension and other benefits received by its former Chief Executive Officers Percy Barnevik and Göran Lindahl, adding that restitution will be sought of amounts paid in excess of obligations.

The Board said Barnevik had received some CHF 148 million in pension benefits after his resignation as CEO in 1996, while Lindahl’s pension and other benefits amount to some CHF 85 million.

“These benefits were made available under the assumption of proper corporate approvals by the Board of Directors or on the basis of Board delegation,” said ABB chairman Jürgen Dormann. “The Board of Directors has now determined that approval procedures for these benefits were unsatisfactory and that the company will seek restitution of amounts paid in excess of its obligations.”

The Board will be discussing restitution with Mr. Barnevik and Mr. Lindahl and hopes the matter can be settled amicably.

The Board of Directors said it is acting after a detailed internal review in recent months, coupled with external expert opinions.

The Board of Directors stressed that compensation and pension levels of other ABB executives comply with prevailing international practices. Compliance is ensured by a recently established nomination and compensation committee.

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