Some People Get It (Aflac)

Monday, 17 November 2008, 6:21

There are some companies in America that aren’t failing and aren’t demanding bail-out money just to line the pockets of their CEO’s.

Aflac CEO will forgo compensation package if fired, replaced or bought out

Aflac Inc. Chairman and Chief Executive Officer Dan Amos will give up a $13 million package Aflac would owe him if he was fired, replaced or if another company bought the supplemental insurer, Aflac said Friday.

“It’s the right thing for us, and I think it tells the shareholders that I’m interested in doing the right thing,” Amos said. “Credibility in today’s world — because there’s so much uncertainty — is very important.”

Under Amos’ employment contract, if Aflac merged with another company or if he was replaced, Amos would be entitled to receive three times his annual salary and bonus — about $13 million in potential cash compensation.

Or, if Amos was ever fired, he would receive up to that same amount as severance.

Amos’ decision to forego these compensation elements of his contract — typically referred to as a “golden parachute” — comes at a time when shareholders and the general public have expressed outrage over executive pay at other public companies.

Columbus, GA is Aflac’s HQ’s and while I’m hearing “bail-out the big three” and “golden parachutes” and “AIG goes to the spa”, I haven’t heard a blip about this anywhere but the local news rag.

Thank You Mr. Amos!!!

Note: The article is from the Columbus Ledger-Enquirer.  I do not know how long the link will be available free, so I have quoted a majority of the article here.

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10 Comments for “Some People Get It (Aflac)”

  1. 1Bob

    wrote on 17 November 2008 at 12:54

    As much money as Amos has made from AFLAC just in the last 5 years, $13 mill is NOTHING to him !! He has made HUNDREDS of millions of dollars … $13 mill is a TiNY sacrifice for him!! Look it up!

    You’re a fool if you think he is being altruistic.

  2. 2Jo

    wrote on 17 November 2008 at 13:12

    You missed the point Bob.

  3. 3Bob

    wrote on 17 November 2008 at 13:59

    then what is the point?

  4. 4Bob

    wrote on 17 November 2008 at 14:03

    Dan Amos has already lined his pockets — by providing unnecessary insurance to the very people who shouldn’t be spending money on it … they would be better off just saving their money for “a rainy day.” He doesn’t need a bailout because he has already gotten more money than god from the fools who buy his insurance and the stockholders who also are laughing all the way to the bank.

  5. 5Jo

    wrote on 17 November 2008 at 14:25

    The point is that while citizens are being screwed with bail outs that are being used for golden parachutes, someone has decided to not take one. It does not matter that he’s already rich or not, its the principle of what he’s doing.

    Sounds like you’re either really bitter at a) Aflac, b) Mr. Amos, or c) Rich People in general.

    Get that checked.

  6. 6Bob

    wrote on 17 November 2008 at 14:32

    On the contrary — I appreciate rich people who actually earn their money, but not by “screwing” (your term) citizens who are conned into buying insurance that they don’t need. Amos already HAS his golden parachute in the form of salary, bonuses, stock options; the man is close to being a BILLionaire. $13 million is chump change to him — he makes more than that in a month! So don’t make him out to be a saint for “giving it up.” The real hero is the guy who never had a golden parachute in the first place.
    He is “declaring not to take one” purely for good pr reasons, no other.

  7. 7Jo

    wrote on 17 November 2008 at 14:44

    Listen to yourself Bob, your hate for Aflac comes through loud and clear.

    “conned into buying insurance they don’t need”.

    I happen to have 2 Aflac policies that I hope I never need, but that’s what you buy insurance.

    Again, you are still missing the whole point and I’ve spelled out why clearly and I refuse to argue with you further about it.

  8. 8Bob

    wrote on 17 November 2008 at 15:34

    You say, “thank you, Mr. Amos” — you’re thanking him for what??
    You did not make a point, except that you think he is a hero for giving up a “parachute” of a few cents (relative to all the other compensation he has gotten and continues to get) — a parachute probably wouldn’t meet his personal monthly expenses for a month.
    I don’t hate aflac, I just think it is a scam.
    I don’t hate Amos; I just don’t think he is a hero; I think he doing no more than seeking good pr by “giving up” his pennies. He is not sacrificing anything, so you shouldn’t pretend that he is.
    Argument ended — you have your view; I have mine.

  9. 9Karen

    wrote on 17 November 2008 at 21:26

    AFLAC, actually, is quite good. My brother in law was seriously disabled from an accident 2 years ago and his policy provided for them when they really needed it.

    Probably why the company is successful and people continue to buy the policies.

    Karen´s last blog post … Send Some Holiday Cheer to Our Heroes

  10. 10Matthew

    wrote on 27 November 2008 at 0:57

    Why do CEO’s even deserve to make hunderds to thousands of times the wages of their low level workers, plus any “bonus”?