Aflac Compensation Vote
Aflac, the insurance company with the spokesduck, is putting its executive compensation plan before stockholders for their approval. While the vote is non-binding, they have taken the perspective that it is morally binding. Aflac consistently out-performs the market (by a lot), and the leaders could certainly justify outrageous packages -- but they have chosen instead to remain transparent and accountable.
This is a real example of Principle-Power in action. The principle in greatest prominence here? "Build better value for our shareholders". More public companies should consider having this as a core value and addressing it similarly.
In a cultural shift, CEO Dan Amos appeared on the NBC Today Show, perhaps the most un-business-oriented television show on the air, proving the uniqueness of this move. He went on the record saying that if the shareholders objected to the compensation committee's recommendation then Aflac would reexamine and change its practices. Talk about putting your money where your mouth is!
Below is an excerpt from Aflac's website. Read the corporate announcement by clicking here.
Our Philosophy
Mission
To combineinnovative strategic marketing with quality products and services atcompetitive prices to provide the best insurance value for consumers.
Guiding Principles
* Offer quality products and services at competitive prices and use new technology to better serve our policyholders.
* Build better value for our shareholders.
* Supply quality service for our agents.
* Provide an enriching and rewarding workplace for our employees.
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