Can we talk �" about your ceo’s pay?

Aflac shareholders are quacking about executive director pay, but longtime CEO Daniel Amos insists that he’s not quaking.

The quacking sound is the growth chatter related to “say on pay” stockholder proposals. These proposals call for shareholders to vote on executive director compensation bundle. Aflac is the first large company in the U.S. To adopt such an attack.

Although Aflac is not expression much about the construction of its new say-on-pay process, it’s receiving a ton of insurance coverage for the shift, which was initiated via a stockholder resolution last year. Amos told several news outlets that he embraced the alteration; he also revealed that his 2007 compensation was approximately equal to his 2006 compensation.

The say-on-pay debate is interesting, but until late it glossed over the larger issue of communicating between executive director management/the board and shareholders. Forthcoming research from the Millstein Center for Corporate Governance and public presentation at the Yale School of direction addresses this gap. A study, to be published in June, examines the “restraint, risks, benefits and sustained commitments by investors and boards to engage in substantive dialogue.”

The initial findings of the study, “Talking administration: Board-Shareowner communicating on executive director Compensation,” has yielded the followers insights:
•Sustained, two-way dialog between boards and shareholders is rare in the U.S.;
•There is no insurmountable legal obstruction [including Reg FD] to boards and shareholders engaging in constructive dialogue on administration matters, including executive pay; and
•contempt how much we all love Gb Gottfried’s vocal stylings, it may be time for Aflac to retire the duck.

In the involvement of full revelation, that last slug point was not in the study. A sneak peak of the study’s determination is available here.