Decision by Verizon Board to Adopt ‘Say on Pay’ Gives Greater Voice on Executive Pay

The AFL-CIO commends a decision by the board of Verizon Communications Inc. today to adopt an advisory vote on executive pay as a good first step for shareholders.

A group of institutional investors that own nearly $800 million in Verizon stock last month urged the company to adopt the “say-on-pay” shareholder proposal that received a majority of the votes cast by shareholders at the May 3, 2007 annual meeting.  The AFL-CIO campaigned for support of the shareholder proposal, sponsored by C. William Jones, president of the Association of BellTel Retirees.  The AFL-CIO also highlighted Verizon as the poster child for pay for failure on its Executive PayWatch website this year.

“This is a strong victory for investors,” said AFL-CIO Secretary-Treasurer Richard Trumka. “Shareholders delivered a vote of no confidence in CEO Ivan Seidenberg’s pay, and the company took notice,” he said.

Verizon announced it will adopt the policy giving shareholders a voice in executive pay starting in 2009. The company also announced that it will adopt a policy ensuring the independence of the compensation consultant that works for the board’s human resources committee by banning it from doing any other work for the company. The company also said it will clarify the types of executive compensation included in severance arrangements already subject to a shareholder vote.

The AFL-CIO looks forward to participating in discussions with the company on the details of implementing the shareholder proposals.  America’s working families are significant holders of Verizon stock through retirement plans. Union-sponsored pension plans hold more than $400 billion in assets.

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The AFL-CIO is the umbrella organization for America’s unions, representing 10 million workers.

Contacts:  Steve Smith (202) 637-5018;

Heather Slavkin (202) 637-5318; (202) 486-2967