38 / 68
2014 MIP Payouts:
The following table reflects target, earned and paid
percentages of salary for the non-equity incentive
measures based on 2014 performance results for the
NEOs:
Percent of Base
Salary
NEO
Target
Earned
Daniel P. Amos
220%
335%
Kriss Cloninger III
150%
225%
Paul S. Amos II
125%
185%
Eric M. Kirsch
200%
324%
Tohru Tonoike
100%
122%
*
Includes amounts accrued for a deferred retirement benefit for
Mr. Tonoike as more fully described in connection with the 2014
Summary Compensation Table and the 2014 Nonqualified
Deferred Compensation Table.
The Compensation Committee has the discretion in
certain limited circumstances to adjust the MIP results
related to performance measures if it deems that a
class of MIP participants would be unduly penalized or
rewarded due to the incomparability of the result to the
performance measure as determined by the
Compensation Committee. The Compensation
Committee did not adjust the NEOs’ MIP results for
2014.
For additional information about the MIP, please refer to
the 2014 Grants of Plan-Based Awards table below,
which shows the threshold, target, and maximum award
amounts payable under the MIP for 2014, and the 2014
Summary Compensation Table, which shows the actual
amount of non-equity incentive plan compensation paid
to the NEOs for 2014.
Long-term Equity Incentives
In 2014, LTI awards were provided in the form of
performance-based restricted stock (“PBRS”) (for
executive officers including all NEOs) and stock options
(for all officers, except the CEO). For 2014, the CEO’s
long-term incentive award was made entirely in PBRS.
PBRS awards will be reduced or cancelled if
management fails to maintain appropriate risk-based
capital levels. In addition, in such case, the value of
existing awards and other shares held by our
executives likely will decline, providing strong economic
incentive to manage capital and risk. Options only
provide value if our share price appreciates and the
option vests.
LTI targets as a percent of base salary for the NEOs were as follows:
Named Executive Officer
Target LTI
(as Percent of Base Salary)
Daniel P. Amos (Chairman & CEO)
Performance-based
Kriss Cloninger III (President, CFO & Treasurer)
350%
Paul S. Amos II (President, Aflac)
250%
Eric M. Kirsch (EVP, Global Chief Investment Officer, Aflac)
250%
Tohru Tonoike (President & COO Aflac Japan)
250%
34