Aflac Investors Get a Say on Executive Pay

[Omaha Steve]

http://dealbook.blogs.nytimes.com/2008/05/06/aflac-investors-get-a-say-on-executive-pay-a-first-for-a-us-company/

May 6, 2008, 7:54 am

Aflac on Monday became the first American company to give shareholders a vote on top management’s compensation — or, in governance parlance, a say on pay. And apparently they think the compensation committee is doing a fine job.

Slightly more than 93 percent of shareholders approved of the $11.96 million compensation package that Daniel P. Amos, Aflac’s chief executive for the last 18 years, received last year. Only 2.5 percent voted against it.

The resounding vote of confidence does not surprise compensation experts. “Aflac is well suited for a say-on-pay vote because it has a good story to tell to shareholders,” Irving S. Becker, who heads up the Hay Group’s executive compensation practice, told The New York Times. “Aflac’s C.E.O. has created a lot of value for shareholders over his long tenure, and his pay package is shareholder-friendly.”

Indeed, Aflac’s stock has appreciated by more than 3,000 percent during Mr. Amos’s tenure. The stock closed at $66.88 Monday, down 26 cents.

Aflac is the first of what governance experts expect will be numerous companies to offer shareholders a say on pay. Verizon Communications, Par Pharmaceutical, Blockbuster and RiskMetrics have pledged to do so, and shareholders are clamoring for the vote at other companies.

Last year, investors filed 60 resolutions asking for a say on pay and got about 44 percent of the vote, on average. This year, more than 90 such resolutions were filed.

Go to Article from The New York Times » http://www.nytimes.com/2008/05/06/business/06pay.html?_r=1&dlbk&oref=slogin

[pinto]

1. Kick. This is hopefully a growing trend. NYT has devoted a couple of articles on the issue,

along with this, in the last month or so.