Proxy Blog

Aflac Incorporated

April 2, 2020

The annual proxy for this insurance company had the following proposals: 

  • Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 

Magni for all proforma proposals: 

  • Directors – The board has a majority of independent directors and some have CEO/CFO experience with other companies. The compensation of directors is disclosed with a meaningful portion in equity where the equity has restrictions to align director incentives with long-term value creation 
  • Auditors  There appear to be no controversies with the financial statements of the company. 
  • “Say-on-pay” Advisory Vote – The proxy materials disclosed a shareholder engagement program with a broad range of topics. The peer group was listed, and the company was benchmarked against the peer group. Magni voted for this proposal, though the level of activity in the shareholder engagement program should be disclosed and the criteria for the peer group should be more precise.