COLD SPRING HARBOR, N.Y.,
March 21, 2017
/PRNewswire-USNewswire/ -- Verizon Communications (NYSE:VZ)
retirees want to hold company executives accountable by clawing
back compensation when the company violates laws, regulations or
company policy, according to a shareholder proposal backed by the
Association of BellTel Retirees, Inc.
(www.BellTelRetirees.org), that will be voted on at Verizon's
Annual Meeting, May 4 in Dallas.
In 2015 Verizon agreed to pay $90
million to settle charges related to unauthorized
third-party charges placed on subscriber bills, a practice known as
"cramming." According to the proposal, any executive who oversaw or
approved misconduct like this that causes significant financial or
reputational harm to Verizon could have incentive pay
revoked.
The shareholder proposal was introduced by Jack Cohen, Chairman of the 134,000-member
retiree group. The clawback proposal (Item # 9) would amend
compensation policies to disgorge incentive earnings from senior
executives whose conduct results in substantial criminal or civil
penalties against Verizon.
"Why reward unscrupulous behavior," asked Mr.
Cohen. "If an executive behaves badly, unethically, or fails to
maintain legally appropriate standards, hold them
accountable."
The Association itself introduced a second shareholder
proposal to end the "uneven playing field" between senior
executives and rank-and-file management, related to retirement
savings benefits (Item #11).
There is no ceiling to the company match for those in the
high-level Executive Deferral Plan, yet the plan for rank-and-file
management is capped by law. In 2015 CEO Lowell McAdam received a matching contribution
of $410,000, 20 times the maximum
allowable for rank-and-file managers and others in the
tax-qualified Management Savings Plan.
Since 1998, BellTel shareholder proposals have resulted in
11 changes in Verizon's corporate governance and executive
compensation policies. Three of these reforms (in 2003, 2007 and
2013) were imposed by a majority vote by shareholders and eight
were negotiated or voluntary governance changes.
"As the largest individual group of shareholders, Verizon
retirees want and expect a voice in the corporate governance of our
company and we have our finger on the pulse," said BellTel
President Jack
Brennan.
The Association of BellTel Retirees is a 134,000 member
non-profit advocacy group that works for the protection of Verizon
retirees' pensions and benefits. It can be found
at www.BellTelRetirees.org
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/verizon-retiree-proxies-want-to-claw-back--level-playing-field-on-executive-pay-300427031.html
SOURCE Association of BellTel Retirees Inc.