Aflac Inc. says its chief executive is forgoing his $2.8 million bonus, while the company's chief financial officer has volunteered to trim his bonus by 35 percent, or about $477,000.
The Columbus, Ga.-based insurer said the compensation committee for the company's board of directors accepted the decision by Aflac Chairman and Chief Executive Daniel P. Amos, noting that the company's stock price has been hurt by market turbulence and doesn't reflect what it called a "strong operating performance in 2008."
Last year, Amos received a salary of $1.3 million and President and CFO Kriss Cloninger received a salary of $857,700.
Shares fell $1.21, or 7 percent, to close earlier at $15.80 - less than one-quarter of the $68.81 the stock traded at last spring before the market meltdown. Earlier this month the insurer reported a steep fourth-quarter profit drop and operating earnings that missed analyst expectations. Credit ratings agency Standard & Poor's also cut Aflac's financial strength rating to "AA-" from "AA" and its debt rating to "A-" from "A" last month.
(AP)
