Aflac Incorporated says it will give shareholders a nonbinding vote on executive compensation beginning in 2009.
The board of directors set 2009 as the effective date because it will be the first year that executive compensation tables in the proxy statement will contain three years of data that reflect the Securities and Exchange Commission's new disclosure rules.
"Our shareholders, as owners of the company, have the right to know how executive compensation works," says Aflac chairman and CEO Dan Amos. "The board's action is in keeping with Aflac's longstanding pay-for-performance compensation policy and our commitment to transparency at all levels.
He says the non-binding vote will be an opportunity for shareholders to provide feedback on executive compensation.
"We believe that providing an opportunity for an advisory vote on our compensation report is a helpful avenue for our shareholders to provide feedback on our pay-for-performance compensation philosophy and pay package."