Aflac CEO Amos foregoes golden parachute

CHARLOTTE, N.C._ Aflac Inc.'s Chairman and Chief Executive Daniel P. Amos said Friday he will forego the "golden parachute" components of his employment contract because he feels he doesn't need them.

"I think there are a lot of uncertain times in the stock market, and people are nervous and they want to make sure company officials have their best interest at heart," Amos said in an interview with The Associated Press. "The symbolism of me giving up the golden parachute sends the message that I have enough, I don't need it and I would not take the money if for some reason I left."

It is common for senior executive contracts to have so-called golden parachute clauses, which typically give them lucrative severance pay-outs under a range of circumstances.

However, executive pay -- including bonus and severance compensation -- has come under increasing scrutiny amid a growing global economic crisis, especially as banks and some insurers seek government assistance.

Amos said the company's capital position is strong and "we don't need any funds."

Under his original employment contract, Amos would have been entitled to receive three years of salary and bonus, totaling about $13 million, in the event of a change in control, the health and disability insurer said.

In the event of his termination from the company, Amos would have been provided severance compensation of up to $13 million in cash.

"I want to emphasize that Mr. Amos reached this conclusion entirely independent of the board of directors," said Robert B. Johnson, Aflac board member and chairman of the company's compensation committee, in a statement. "He felt strongly that there are no circumstances under which he would accept payment in the event of a change of control or severance."

Shares of Aflac fell $2.67, or 6 percent, to close at $41.77 Friday.