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Weightings of Each Performance Objective for 2014:
Daniel P.
Amos
Kriss
Cloninger III
Paul S.
Amos II
Eric M.
Kirsch Tohru Tonoike
Corporate Objectives:
Operating Earnings per share (excluding foreign
currency effect)
27.27% 23.32% 24.00% 20.00%
15.00%
Operating Return on Shareholder Equity (excluding
foreign currency effect)
6.82% 6.67% 6.00% 7.50%
5.00%
Statutory Risk Based Capital Ratio
6.82% 6.67% 6.00% 5.00%
—
Solvency Margin Ratio
6.82% 6.67% 6.00% 5.00%
5.00%
Net Investment Income (Consolidated)
6.82% 6.67% 6.00%
—
5.00%
Subtotal Aflac Inc.
54.55% 50.00% 48.00% 37.50%
30.00%
U.S. Segment:
New Annualized Premium
4.55% 5.33%
—
—
—
Direct Premiums
4.55% 5.33%
—
—
—
Pretax Operating Earnings
4.55% 6.01% 8.00%
—
—
Subtotal
13.65% 16.67% 8.00%
—
—
Japan Segment:
New Annualized Premium
11.36% 10.00% 12.00%
—
15.00%
Direct Premiums
9.08% 10.00% 4.00%
—
5.00%
Operating Expenses
—
— 4.00%
—
5.00%
Pretax Operating Earnings
11.36% 13.33% 12.00%
—
15.00%
Subtotal
31.80% 33.33% 32.00%
—
40.00%
Global Investments:
Net Investment Income (Consolidated)
—
—
— 40.00%
—
Credit Losses/Impairments
—
—
— 15.00%
—
Subtotal
—
—
—
55.00%
—
Qualitative
12.00% 7.50%
30.00%
GRAND TOTAL
100.00% 100.00% 100.00% 100.00% 100.00%
Weightings of Annual Incentive Metrics as a Percent of Target
The performance measures are weighted for the NEOs
and all other officer levels of the Company. The intent
is to weight them according to how each position can
and should influence their outcome.
Qualitative Goals:
Actual performance relative to MIP targets was
determined after the end of the year and presented to
the Compensation Committee for discussion and
approval at its February 2015 meetings. The actual
non-equity incentive plan payments to the NEOs are
reflected in the 2014 Summary Compensation Table
below in the column labeled Non-Equity Plan
Compensation.
Further, for Mr. Paul S. Amos II and Aflac Japan
executive officers (including Mr. Tonoike), we added a
qualitative Aflac Japan business segment performance
metric for the management of the corporate value
enhancement project (“CVEP”) for 2014. Aflac Japan’s
CVEP is a business transformation program that was
designed to strengthen our business systems and
processes to maintain our leadership position in
Japan’s third sector products. During 2014, a review of
the program led to certain changes in the
transformation strategy. The performance achievement
was quantified based upon each officer’s involvement
with CVEP before and after management adopted
various adjustments to the transformation effort. Based
on this review, it was determined that Mr. Paul S. Amos
II and Mr. Tonoike achieved 100% and 25%,
respectively.
For 2014, Mr. Kirsch’s MIP metrics further emphasized
corporate and quantitative Global Investment
objectives, while Global Investments qualitative
measures were reduced significantly as those metrics
were focused on the initial development and
implementation of the Global Investment strategy. The
remaining qualitative measure was based on
succession planning to ensure that the critical function
of Global Investments leadership is a focus. For Mr.
Kirsch’s qualitative
Global Investments metrics, the
performance achievement was 100%.
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