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401(k) Savings and Profit Sharing Plan
The Company maintains a tax qualified 401(k) Savings
and Profit Sharing Plan (the “401(k) Plan”) in which all
U.S.-based employees, including the U.S.-based NEOs,
are eligible to participate under the same terms. The
Company will match 50% of the first 6% of eligible
compensation that is contributed to the 401(k) Plan.
Employee contributions made to the 401(k) Plan are
100% vested. Employees vest in employer contributions
at the rate of 20% for each year of service the
employee completes. After five years of service,
employees are fully vested in all employer contributions.
Other Benefits
The Company provides NEOs with other benefits that
we believe are reasonable, competitive and consistent
with our overall executive compensation program. For
details, see the All Other Compensation column in the
2014 Summary Compensation Table on page 44. In
2014, at the Company’s request, Mr. Paul Amos, II and
his family relocated on a non-permanent basis to
Tokyo, Japan. His expatriate assignment is expected to
end in 2015 when he will return to the United States to
continue his current role as President of Aflac. The
Company’s expatriate assignment policy provides
benefits for employees working on non-permanent
assignments outside their home countries. The benefits
provided to Mr. Amos under this policy are the same as
those benefits provided to other employees and the
Company’s policies are consistent with other major
U.S.-based multinational companies. Under the
Company’s policy, the Company is responsible for any
additional U.S. or foreign taxes that Mr. Amos incurs as
a direct result of his international assignment, and he is
responsible for the amount of taxes he would have
incurred had he continued to live and work in the United
States.
The Company maintains medical and dental insurance,
group life insurance, accidental death insurance, cancer
insurance, and disability insurance programs for all of
its employees, as well as paid time off, leave of
absence, and other similar policies. The NEOs and
other officers are eligible to participate in these
programs along with, and on the same basis as, the
Company’s other salaried employees.
In addition, the NEOs are eligible to receive
reimbursement for medical examination expenses. For
security and time management reasons, certain of the
Company’s officers occasionally travel on corporate
aircraft for business and personal purposes. Personal
travel on corporate aircraft and security services are
provided where considered by the Board of Directors to
be in the best interest of the Company and its business
objectives.
ADDITIONAL EXECUTIVE COMPENSATION PRACTICES AND PROCEDURES
Equity Granting Policies
A February meeting of the Compensation Committee is
held approximately one to two weeks after the
Company’s fiscal year results are released to the public.
As a general practice, the Company makes the majority
of its equity grants on the date the Board of Directors
meets in February, and has done so since 2002. The
Company has never engaged in “backdating” of
options. Based on recommendations developed by the
CEO and President/CFO with input from the Consultant,
stock options, PBRS and TBRS awards are submitted
to the Compensation Committee for approval at its
February meeting. Option grants are awarded on the
date of the meeting, and have a per share exercise
price set at the closing price on the date of grant.
The Company may periodically make additional equity
grants during the course of the year. However, it is the
Company’s policy not to make any equity grants in
advance of material news releases. As detailed
previously in the section labeled “CEO Compensation
and Pay-for-Performance,” the Company adjusted the
amount of equity compensation granted to the CEO in
December based on the Company’s performance
relative to peers in 2014.
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