Aflac (NYSE: AFL), which is a major insurer, has an off-beat message – at least, according to its commercials (which involve a noisy duck).
Well, the company has made some history this week. That is, the shareholders can vote "yes" or "no" on executive compensation.
While it is non-binding, it is still important. If anything, its recognition from Aflac that its shareholders have a say on things.
Funny enough, the company really doesn't need this in terms of pacifying shareholders. After all, Aflac has been a solid performer.
However, does this mean we'll see other firms join in the trend? Perhaps some. But, when it comes to giving up a little power, you're likely to see lots of resistance in the boardroom.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
5-05-2008 @ 6:18PM
winslow said...
Every shareholder in every corporation needs the ability to determine if executive pay is excessive, in addition to bonuses and awards. The period of "free money" must end. Time for the pendulum to begin swinging the other way.