COLD SPRING HARBOR, N.Y.,
March 25, 2015 /PRNewswire/ --
Following Verizon Communications (NYSE: VZ) filing its annual proxy
statement with the S.E.C., the company's retirees launched their
17th annual shareowners' corporate governance reform
campaign with a focus on improving the company's executive
compensation practices. Retiree leaders of the Association of
BellTel Retirees Inc. (www.BellTelRetirees.org) have introduced a
proposal (Item #6) to require that excessive executive "golden
parachute" severance payments be approved by shareholders.
The annual meeting is May 7 in
Minneapolis, Minnesota.
BellTel leaders are asking Verizon to seek shareholder approval
for any new or renewed "golden parachute" severance payments for
executive officers exceeding three times the sum of the executive's
base salary plus target short-term bonus. Unlike the current
policy, the proposal defines the "total value" of "severance or
termination payments" to include "any equity awards if vesting is
accelerated, or a performance condition waived, due to
termination."
Currently if CEO Lowell McAdam is
terminated without cause, whether or not there is a change in
control, he could receive an estimated $37.3
million in termination payments, seven times his 2014
base salary plus short-term bonus (see 2015 Proxy, page 61)
http://tinyurl.com/lmfa4dy
"A $37 million golden parachute is
outrageous, particularly since it waives all the performance
conditions that supposedly justify Verizon's lucrative performance
stock options," said shareholder Jack
Cohen. "This $37 million
golden parachute would be in addition to pension and deferred
compensation plans, worth many millions more." Mr. Cohen is
chairman of the board of the 130,000 member non-profit retiree
association.
BellTel President John Brennan
said, "We believe the severance approval policy must include the
total cost of termination payments, including the estimated value
of accelerating restricted stock and performance shares that
otherwise would not have been earned or vested until after the
Verizon executive's termination."
Currently, the company policy excludes the value of accelerated
vesting of performance shares (PSUs) and of restricted stock
(RSUs), including accrued dividends, from the total cost
calculation that trigger the need for shareholder ratification. If
this proxy receives a majority vote it will close the loophole in
the policy.
In 2003 a 59% majority of shares voting supported BellTel's
original proposal to require shareholder approval for "Golden
Parachutes" exceeding 2.99 times the executive's base pay plus
bonus. For over 17 years BellTel leaders have introduced
governance and compensation changes at Verizon, achieving 11
reforms, three by majority vote and eight others agreed to by
the Verizon Board after negotiation with BellTel leaders.
Founded in 1996, the 130,000-plus
member Association of BellTel
Retirees advocates for the pension and benefits of
Verizon retirees.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/verizon-retirees-launch-latest-fight-against-golden-parachutes-300055815.html
SOURCE Association of BellTel Retirees Inc.