AFLAC Shareholders to Advise on CEO Pay

The insurance giant AFLAC will give its shareholders some influence over CEO salaries, in the form of a nonbinding vote on how much executives will be paid. U.S. pension funds and other shareholder groups who have called for "say on pay" policies are branding AFLAC's move as an important step forward.

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RENEE MONTAGNE, host:

Our business news starts with shareholders having more say on CEO pay.

So there's been shock and talk about the breathtaking salaries paid to American corporate executives. Now one U.S. company becomes the first to give shareholders some influence on CEO pay.

Insurance giant AFLAC, known for its TV ads starring a quacking duck, announced yesterday its board of directors voted to give shareholders a say, a vote, on how much executives will be paid. It's a nonbinding vote. Still advisories votes like this already exist in some other countries, including Britain.

U.S. pension funds and other shareholder groups have been calling for a so-called say on pay policies, and they call this move an important step.

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