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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 complete year of service. 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 2016
Summary Compensation Table on page 47.
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
Each year, the Compensation Committee meets shortly after the Company’s fiscal year results are released to
the public. Based on recommendations developed by the CEO, President, and CFO with input from Mercer,
stock options, PBRS and time-based restricted stock 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 has never engaged in “backdating” of
options.
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 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 2016 based on the Company’s performance relative
to peers in 2016.
Stock Ownership Guidelines; Hedging and Pledging Restrictions
The Company believes its executive officers and Directors should have a significant equity interest in the Company,
and has enforced stock ownership guidelines for executive officers and Directors for almost two decades. The
current stock ownership guidelines are as follows:
Officers have four years from date of hire or promotion to satisfy their respective stock ownership requirements.
Non-employee Directors have five years from the date first elected to the Board to satisfy these requirements.
Position
Ownership guideline
Chairman, CEO, President, and President of Aflac
5x base salary
All other executive officers
3x base salary
Non-employee Directors
4x annual retainer
Compensation Discussion & Analysis
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Additional Executive Compensation Practices and Procedures
AFLAC INCORPORATED
2017 PROXY STATEMENT
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