October 2021 HR Lineup

HR L I NEUP OCTOBER

6

— Single Cycle Learn how performance, incentives and salary review work together

ABB follows a business-focused, inte- grated Single Cycle for the management of employee performance and compensa- tion (salary and short-or long-term incen- tives where applicable). The Single Cycle features a common global timeline which aligns performance-based compensation decisions such as the annual salary reviews, short-and long-term incentive programs, and related sub-processes.

The Single Cycle is set up in a manner that allows coordination of global and local ex- ecution and necessary global governance and compliance, while providing business ownership and successful, streamlined de- livery, irrespective of geography. While the Single Cycle is a continuous process, it does have a number of clear and defined touchpoints based on the common global calendar. An overview of the key dates for 2021/2022 are:

PDA opens

December 1, 2021 January 24, 2022

PDA ratings to be confirmed in PDA tool

AIP Individual Performance Measure and Marketing & Sales measures confirmed in the HRGT system

January 24, 2022 February 28, 2022

PDA closes for goal setting

Global and local compensation planning commences

March 1, 2022

Effective date for any salary increases

March 2022 payroll*

Effective date for salary increase processing

March 2022 / April 2022 payroll**

* Unless governed by local legislation or Collective Bargaining Agreements (CBAs) ** Depending on in-country payroll processing date

Components of the Single Cycle

The Performance and Development Appraisal (PDA) is a component of people performance management and the Single Cycle. The PDA is an important commit- ment that gives managers and employees an opportunity to have honest, quality conversations that recognize strengths

and results, and also provide advice and coaching on how to deliver even better performance. Through the PDA, managers and employees engage in a formal two- way conversation that reflects on the past year and establishes expectations for the coming year.