Aflac lets shareholders weigh in on exec pay

NEW YORK (CNNMoney.com) -- Aflac said Wednesday its board approved a resolution giving shareholders the right to a non-binding vote on executive pay packages that will take effect in 2009.

"Our shareholders, as owners of the company, have the right to know how executive compensation works," Aflac CEO Dan Amos said in a statement.

"We believe that providing an opportunity for an advisory vote on our compensation report is a helpful avenue for our shareholders to provide feedback on our pay-for-performance compensation philosophy and pay package," he added.

Aflac's move comes amid a growing outcry among shareholders over executive pay. Home Depot (Charts) faced criticism from shareholders recently after ousted CEO Bob Nardelli received a $210 million severance package.

Columbus, Ga.-based Aflac (Charts), best known for its ad campaign that features a duck, is the first major U.S. company to give shareholders the right to vote on executive compensation.

The vote will not be binding, but it would be difficult for the company to ignore shareholders, according to a report in USA Today.

Similar proposals at other companies have never passed, and other companies are expected to follow suit, Richard Ferlauto, director of pension and benefit policy at AFSCME, told the newspaper.

"The only question is not when or if, but how many," he told USA Today.

The American Federation of State, County and Municipal Employees (AFSCME) union is a major institutional investor.

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