Improve Transparency and Accountability of Executive Compensation
At Verizon's May 3, 2007 Annual Meeting, shareholders will have the opportunity to vote on three important shareholder resolutions designed to strengthen transparency and accountability of executive compensation at Verizon. These proposals urge the Board of Directors to seek shareholder approval of excessive severance agreements (Item #4), disclose relationships that might compromise the independence of executive pay consultants (Item #5), and submit executive pay packages to an advisory shareholder vote (Item #6).
Why We Support These Proposals
Verizon's Compensation Committee Fails the Test:
Vote Against All Six Members
| Director |
|
| Richard L. Carrion |
NO |
| Robert W. Lane |
NO |
| Joseph Neubauer |
NO |
| Clarence Otis, Jr. |
NO |
| Walter V. Shipley, Chair |
NO |
| John R. Stafford |
NO |
In a 2004 letter to shareholders, Warren Buffett noted, "In judging whether Corporate America is serious about reforming itself, CEO pay remains the test."
Is Verizon serious about reform? Consider the evidence:
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The Committee retained a compensation consultant whose advice may have been conflicted.
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At Verizon, executive pay is high relative to performance, which is weak when measured against its peers.
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The Committee has repeatedly failed to protect our valuable assets from waste.
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The Committee has repeatedly failed to give shareholders clear information to assess how they pay top executive officers.
Why We Recommend a Vote No
