Aflac shareholders approve CEO pay

The Associated Press --

COLUMBUS, Ga. --

Shareholders of health and disability insurer Aflac have approved more than $12 million in compensation for Chairman and Chief Executive Dan Amos in the first stockholder vote on executive pay by a major U.S. company.

Aflac, which sells insurance in the U.S. and Japan, says about 93 percent of the votes approved the 2007 compensation package of the company's top five executives. About 2.5 percent were against it.

The "say on pay" announcement came Monday before a crowd of about 200 attending the annual shareholder meeting at the Columbus Museum.

The Associated Press reported two months ago that Amos received nearly $12 million in compensation last year, when the company's stock climbed to all-time highs. Aflac spokeswoman Laura Kane said Monday's vote included retirement benefits not included in the AP's calculation, bringing the total to $14.83 million.

Aflac, whose quacking duck television commercials have made it practically a household name, was founded in 1955 by Amos' father, Paul Amos, and Paul's brothers John and Bill. Dan Amos became CEO in 1990.

The Aflac board voted in February 2007 to give shareholders an advisory "say-on-pay" vote.

The insurer is one of several companies, including Verizon Communications Inc. and Blockbuster Inc., that have been pressured to give shareholders a say in determining executive compensation.

"We were the first to agree to the vote and the first to actually hold it," Aflac spokeswoman Laura Kane said.

Addressing the shareholders at the meeting, Amos said: "With only two-and-a-half percent voting no, I am pleased that we are in the confidence and trust of the overwhelming majority of our shareholders.

"I want to assure you that our goal at Aflac has always been to be responsive to shareholders and to bring you value, and I thank you for your support," he said.