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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
2015 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 ended on
December 31, 2015 when he returned 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 were 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 officers
of the Company 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 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, President, and CFO with input from the
Consultant, stock options, PBRS and TBRS awards are
submitted to the Compensation Committee for approval
at its February meetings. 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 and President
Compensation and Pay-for-Performance,” the Company
adjusted the amount of equity compensation granted to
the CEO and President in December 2015 based on the
Company’s performance relative to peers in 2015.
Stock Ownership Guidelines; Hedging and Pledging Restrictions
The Company believes that its executive officers and
Board members should have a significant equity
interest in the Company. The Board first established
stock ownership guidelines for officers and Board
members in 1998. In November 2012, the Board
amended the stock ownership guidelines, which define
stock ownership value as a multiple of base salary, and
set the levels as follows:
Officer Level
Guideline (Multiple of
Base Salary)
Chairman, CEO, &
President
5.0x
President of Aflac
5.0x
Executive Vice
President
3.0x
All other Executive
Officers
3.0x
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