Summary
Aflac Incorporated (AFL) filed an 8-K on January 7, 2007, reporting a significant change in its investment leadership. Joseph W. Smith, Jr., a named executive officer and formerly Senior Vice President, Investments and Chief Investment Officer, stepped down from these roles on January 3, 2007. While Mr. Smith is no longer serving as CIO, he will remain with Aflac as a Senior Advisor for Corporate Investments until December 31, 2008, to facilitate a smooth transition and contribute to investment strategy. This transition is governed by a new employment agreement. The employment agreement outlines Mr. Smith's compensation and benefits through the end of 2008. He will receive an annual base salary of $425,000 in 2007 and $300,000 in 2008. He is eligible for a 2006 bonus but will not participate in the Management Incentive Plan (MIP) for the term of his advisory role, though he retains eligibility for broad-based employee benefits. The agreement includes standard confidentiality, non-compete, and non-solicitation clauses, and can be terminated by either party.
Key Highlights
- 1Joseph W. Smith, Jr. stepped down as Senior Vice President, Investments and Chief Investment Officer (CIO) on January 3, 2007.
- 2Mr. Smith will transition to a Senior Advisor, Corporate Investments role through December 31, 2008.
- 3The advisory role is intended to ensure a smooth transition of duties and provide ongoing investment strategy assistance.
- 4A new employment agreement has been established with Mr. Smith covering the advisory period.
- 5Mr. Smith's base salary will be $425,000 in 2007 and $300,000 in 2008.
- 6He will receive a bonus for the 2006 performance year but will not be eligible for the Management Incentive Plan (MIP) during the advisory term.
- 7The employment agreement includes confidentiality, non-compete, and non-solicitation provisions and allows for at-will termination.