Aflac's 2016 Proxy

6 / 72

further enhance growth and build shareholder value, the Board determined it was important to align Board
oversight and our associated committee structure accordingly. This reconstituted Corporate Development
Committee will assist the Board in reviewing specific corporate development activities including acquisitions, joint
venture marketing and distribution arrangements, and strategic equity investments.
Executive Compensation
In response to constructive feedback from investors, we have incorporated the use of an average risk-based
capital (RBC) ratio over a three-year period in the Company’s long-term incentive program, rather than annual
measurements of the RBC ratio during that three-year timeframe. We believe that this revision to executive
compensation appropriately incentivizes long-term growth of the Company while also appropriately minimizing risk
to policy holders and the Company.
Board Composition
As I indicated earlier, self-evaluation is a regular, ongoing process for the Board to maintain the right skill sets and
subject matter experts required for prudent oversight of the Company. Our Board believes that it is appropriate to
maintain a balance of longer tenured members, who bring valuable Company-specific knowledge with a historical
perspective, with shorter tenured members, who bring fresh perspectives and new ideas. For many years, our
Board has also embraced diversity within the board room, and we have enjoyed the benefits accompanying it.
As an insurer emerging from the financial crisis and transforming our global investment function between 2011
through 2015, our Board called for candidates with significant investment, financial, and actuarial skill sets. This
need led to the nominations of Tom Kenny and Joey Moskowitz in 2015.
Additionally, we welcomed a shareholder’s submission of Toshihiko Fukuzawa for director in 2016. Mr. Fukuzawa
brings a wealth of financial experience and knowledge about Japan, as well as information technology, which is
why we believe that he would be a strong addition to our Board.
Corporate Citizenship
Aflac strongly believes that ethics, corporate citizenship and success go hand in hand. Ultimately, all factors being
equal, most people would rather do business with a company that’s also a good corporate citizen. In other words,
helping others also can make good business sense. This philosophy is incorporated into Aflac’s daily operations
and actions in the community. In 2015, Aflac's career sales agents and employees surpassed the $100 million
mark in donations to the Aflac Cancer and Blood Disorders Center of Children’s Healthcare of Atlanta since
beginning this partnership in 1995. This generosity has contributed to the Aflac Cancer Center’s success and
distinction in research, a factor which led to the Aflac Cancer Center being named one of the top 10 pediatric
cancer programs in the United States in 2015 by U.S. News and World Report. Aflac is also dedicated to the
environment in which our policyholders live by striking a balance between effective, efficient operations and
responsible environmental stewardship. Newsweek named Aflac ninth in the U.S. and sixteenth in the world on
its Green Ranking of 500 U.S. Companies, and the Dow Jones Sustainability Index North America listed Aflac as
an honoree for the fifth consecutive year while noting that the Company exceeded industry averages in multiple
areas. Fortune magazine recognized Aflac as one of the 100 Best Companies to Work For in America for the 18 th
consecutive year as well as one of Most Admired Companies for the 15th time, ranking the company No. 1 in
innovation for the insurance, life and health category. In March 2016, Japan Women’s Innovative Network (J-WIN)
awarded Aflac Japan with a special 2016 J-WIN Diversity Award for our commitment to actively promoting women
in leadership. Additionally, Ethisphere named Aflac one of the World’s Most Ethical Companies for the 10 th
consecutive year. To learn more about these achievements and our efforts to be good corporate citizens, please
visit .
In closing, I encourage you to review the accompanying proxy and associated materials and cast your votes prior
to our annual meeting on May 2nd. As a Board, we look forward to receiving and acting upon feedback from our
investors, and we thank you for your support.
Sincerely,
Douglas W. Johnson
Lead Non-Management Director