AFL-CIO Calls on Company to Respond to the Resounding Call for Change on CEO Pay at Verizon

(Pittsburg) Verizon shareholder proposals on CEO pay supported by the AFL-CIO received a record number of votes today at the company’s annual meeting. Additionally, the AFL-CIO-sponsored binding resolution on Golden Parachutes received extremely strong support. The AFL-CIO pointed to the record-high support as a clear marker that shareholders want a serious shift in CEO compensation at Verizon. The shareholder proposals were introduced at Verizon’s annual shareholder meeting in Pittsburgh.

Through retirement savings, America’s working families are significant holders of Verizon stock. Union-sponsored pension funds have $400 billion in total assets as institutional investors.

 “The record votes at today’s meeting send a strong and powerful message to Verizon that shareholders will not stand for excessive CEO compensation,” said AFL-CIO Secretary-Treasurer Richard Trumka. “The question remains: Will Verizon listen, respond and reach out to investors, or will it continue to ignore the strong message that was sent today to clean up its corporate governance?”

The votes for the AFL-CIO supported shareholder proposals:

· 46 percent in favor of the “Golden Parachutes” proposal (Item # 4)
The AFL-CIO introduced a proposal that would close substantial loopholes in Verizon’s current policy for shareholder approval of golden parachutes. Verizon’s current policy allows shareholders to vote on severance agreements that exceed 2.99 times base salary plus bonus but does not include retirement benefits, stock awards or tax reimbursements in the calculation. The proposal would encourage Verizon to eliminate the perverse incentive created when executives look forward to a windfall if they fail to provide good leadership for the company.

· 47 percent in favor of the “Compensation Consultants” proposal (Item # 5)
This proposal would safeguard the independence of pay consultants by requiring Verizon to disclose information to shareholders necessary for a full assessment of its consultants’ independence. This proposal is especially important at Verizon, whose former compensation consultant also performed hundreds of millions of dollars of business for the company itself.

· More than 49 percent in favor of Say on Pay (will not have final count until next week)
The best way to ensure that shareholders maintain a meaningful voice in executive pay decisions is to require Verizon to submit executive compensation packages to a non-binding shareholder vote.

The vote against the reelection of directors who are members of the Human Resources Committee, which sets executive compensation at Verizon, failed, but was seen as an important first step in engaging the Board to be responsive and accountable. The strong votes on the shareholder proposals today indicate that shareholders will continue to demand for reform at Verizon, said the AFL-CIO.

For more detailed information and investor resources about visit http://investor.cwa-union.org/verizon

For copies of the proposals, please call 202-637-5018.

Contact:  Alison Omens (202) 637-5018