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Aflac?s Pay Practices Get 93% Support Submitted by: Ted Allen, Head of Publications

In the first ?say on pay? vote by a U.S. public company, Aflac investors gave 93 percent support to the firm?s executive compensation practices, according to news reports.

There was only 2.5 percent opposition at Aflac?s May 5 annual meeting. The Columbus, Georgia-based insurer decided to hold an annual advisory vote after receiving a shareholder proposal on the issue in late 2006.

Aflac CEO Daniel Amos earned a total of $14.8 million, and had approximately $70 million in stock options vest in 2007, according to the company?s compensation report. Amos? incentive-based pay is entirely performance-based, the company says, noting that since he took the post of CEO in 1990 the firm?s total shareholder returns have exceeded 3,867 percent. Aflac?s stock price has risen about 126 percent since early 2003.

Six other U.S. companies, including Verizon Communications and bond insurer MBIA, have agreed to hold non-binding pay votes. Meanwhile, investors have filed more than 80 proposals this season asking other firms to take this step. ?Say on pay? proposals have averaged 42 percent support at 21 companies so far, earning 50.7 percent support at computer maker Apple, and majority support at printer manufacturer Lexmark International, according to RiskMetrics Group data.

Full post as published by Institutional Shareholder Services -- Corporate Governance Blog on May 05, 2008 (boomark / email).