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For financial performance (OROE, SMR, and RBC), linear interpolation will be used to determine payouts for
performance between the corresponding goals (i.e., threshold to target, or target to maximum)
●●
For RTSR, adjustments of 1.20x or 0.80x would be made only if the Company’s RTSR is in the upper or lower
quartile, respectively, versus its peers; no adjustments to amounts earned pursuant to the Company’s financial
performance will be made for RTSR performance falling between the 25th and 75th percentiles of the peers
●●
Overall, maximum potential payouts will be capped at 200% of target
RBC thresholds were adjusted down modestly to reflect the eventual draw-down of excess capital in the U.S. as a
result of our Japan branch conversion. Overall, we believe that these changes for 2017 further enhance our long-
standing strong pay-for-performance philosophy, while also being responsive to the business and talent markets in
which we compete.
Retirement, Deferral, and Savings Plans
The retirement, deferral and savings plans described below were established in order to provide competitive
post-termination benefits for officers and employees, including the NEOs, in recognition of their service and
contributions to the Company.
Defined Benefit Pension Plans
As described further in “Pension Benefits” below, the Company maintains tax-qualified, noncontributory defined
benefit pension plans covering substantially all U.S. employees, including the NEOs, who satisfy the eligibility
requirements. The Company also maintains nonqualified supplemental retirement plans covering the NEOs. No
change has been made to the pension plans and the benefit level remains the same as it was last year.
Executive Deferred Compensation Plan
The NEOs, together with other U.S.-based eligible executives, are entitled to participate in the Executive Deferred
Compensation Plan (“EDCP”). Mr. Daniel P. Amos and Mr. Crawford are the only NEOs currently participating in
this plan. The EDCP is discussed in more detail below under “Nonqualified Deferred Compensation.”
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GOALS
RELATIVE TSR
(RTSR) MODIFIER
Performance
Level
3-Yr. Avg. Currency-
neutral OROE Goal
(50% weighting)
3-Yr. SMR Goal
(25% weighting)
3-Yr. Avg. RBC Goal
(25% weighting)
Payout
(% of Target)
3-Yr. RTSR
percentile
Rank vs. Peers
Modifier to Earned
Amounts
Maximum 18%
700%
600%
200%
75th percentile
or greater
1.20x
Target
15.75%
600%
500%
100%
Between 25th and
75th percentile
1.00x
Threshold
14%
500%
400%
50%
25th percentile
or lower
0.80x
25%
SMR result
25%
RBC result
RTSR
Modifier
Final
Payout
50%
OROE result
+
+
Awards earned based on three-year average
Currency-neutral OROE, SMR, RBC, and RTSR vs. peers
⊲
PAYOUT
2017
2018
2019
2020
The following illustrates the terms of the 2017 PBRS grant.
Compensation Discussion & Analysis
|
Retirement, Deferral, and Savings Plans
AFLAC INCORPORATED
2017 PROXY STATEMENT
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