“I love to be able to see employees and tell them they get to vote on me,” Aflac CEO Daniel P. Amos tells The Washington Post. “They get tickled. They’ll say, ‘I haven’t decided if I’m going to vote for you or not,’ and I laugh. Part of being a CEO, if you’re a good one, is having a bit of politician in you, because what you’re really doing is asking them for their support.”
In May, Aflac became the first U.S. public company to hold a “say-on-pay” advisory shareholder vote on its executive compensation. More than 93 percent of the votes were in favor of the pay practices at Aflac, which awarded Amos a $14.-million package for 2007.
Despite the large number, the amount is actually proportional to the company’s size, performance, and the percentage of pay it awards in the form of stock options.
Amos headed off another hot-button corporate governance issue last month when he announced he was giving up his golden parachute. The decision means he will forego his $13 million in severance pay he would have been entitled to upon a change in control of the company or termination of his contract.
Still, Amos is not against the practice. “I’m not against golden parachutes,” Amos said. “If you hired me tomorrow for a company, I would require one.”
Amos argued that CEOs need contractual protection in case they are terminated for reasons out of their control. Letting go of his golden parachute, however, may result in even greater support for Amos during next year’s say-on-pay vote.