A Step in the Right Direction

Shareholders to vote on top Aflac execs’ pay is the title of an article in the Money section of USA Today yesterday.  It explains how Aflac will become the first public corporation in America to allow shareholders to approve or disapprove their company’s executive pay.

This is a step in the right direction, although it falls far short of my recommended simple solution for executive pay on October 15th of this year.

The problem is the Aflac vote is non-binding.  If the shareholders vote says the company is paying too much there is only a commitment to sit down with major shareholders and see what changes they would like to recommend.

Change is coming in America involving executive pay.  It going to take years, but let’s keep the heat on.