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2016 MIP TARGETS AND ACTUAL PERFORMANCE
Actual performance relative to MIP targets was determined after the end of the year and presented to the
Compensation Committee for discussion and approval at its February 2017 meeting. The following table shows
the corporate and business segment metrics, objectives, and results for the 2016 MIP awards.
Minimum Goal
Target Goal
Maximum Goal
2016 Actual
2016 Payout
Percentages
Corporate Metrics:
Operating earnings per diluted share on
a consolidated basis for the Company
(excluding foreign currency effect)*
$6.17
$6.29
$6.41
$6.45
200%
OROE (excluding foreign currency effect)
17%
19.5%
22%
17.3%
56%
SMR
500%
600%
700%
945%
200%
Net Investment Income excluding hedge costs
(Consolidated)
Budget
minus 2%
Budget
Budget
plus 2.25%
Budget
plus 0.91%
140.42%
U.S. Segment Metrics:
Increase in New Annualized Premiums
3.00%
4.00%
5.00%
-.34%
–
Increase in Direct Premiums
1.50%
2.25%
3.00%
2.08%
88.39%
Increase in Pretax Operating Earnings
1.00%
3.00%
5.00%
9.67%
200%
Japan Segment Metrics:
New Annualized Premiums
(third sector sales) (billions)
¥74.22
¥75.84
¥77.45
¥83.99
200%
Increase in Direct Premiums
0.25%
0.75%
1.25%
.96%
141.51%
Increase in Pretax Operating Earnings before
allocated expenses and foreign currency change
-4.00%
-3.25%
-2.00%
-2.02%
198.56%
Global Investments Metrics
(Eric M. Kirsch only):
Credit Losses/Impairments (in millions)
($465)
($315)
($165)
($97)
200%
* Corresponds to an increase of a minimum goal of .2%, a target goal of 2%, and a maximum goal of 4% from a 2015 base or $6.16 per share.
Please refer to the 2016 Business Overview section on page 31 for additional information.
2016 MIP PAYOUTS
The following table reflects target and earned percentages of salary for each NEO for the MIP based on 2016
performance results.
The Compensation Committee has the discretion in certain limited circumstances to adjust the MIP results related
to particular performance measures if the Committee determines that a class of MIP participants would be
unduly penalized or rewarded because a payout is incompatible with the performance measure. There were no
adjustments to the NEOs’ MIP payouts for 2016.
For additional information about the MIP, please refer to the 2016 Grants of Plan-Based Awards table below,
which shows the threshold, target, and maximum award amounts payable under the MIP for 2016, and the 2016
Summary Compensation Table, which shows the actual amount of non-equity incentive plan compensation paid to
the NEOs for 2016.
As a % of base salary
NEO
Target
Earned
Daniel P. Amos
220% 339%
Frederick J. Crawford 125% 200%
Kriss Cloninger III
150% 238%
Paul S. Amos II
125% 223%
Eric M. Kirsch
200% 321%
Compensation Discussion & Analysis
|
Elements of Our Executive Compensation Program
AFLAC INCORPORATED
2017 PROXY STATEMENT
37