The shareholders of family-controlled Aflac Inc have overwhelmingly approved the company's pay-for-performance compensation policies – a strategy put forward by second-generation chairman and CEO Daniel P Amos (pictured).
Ninety three percent of votes were cast in favour of "Say-on-Pay" with only 2.5% against. The historic vote marks the first time shareholders were empowered to vote on executive compensation at a public company in the US.
"At Aflac we have long believed in performance-based compensation for all of our employees," said Amos. "I am proud that Aflac's long history of transparency and strong shareholder returns are appreciated by our owners."
Founded in 1955 by brothers John, Paul and William Amos to sell life, health, and accident insurance, Aflac is now the number one provider of guaranteed-renewable insurance in the US. However, the company generates most of its business in Japan where it is the number one insurance company in terms of individual insurance policies.
Since 1990, when Amos took over from his uncle as CEO, the company's total return to shareholders, including reinvested cash dividends, has exceeded 3,867%. During the same period, the company's market value has grown from $1.2 billion to more than $30 billion, with total revenues growing from $2.7 billion to $15.4 billion.
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