From: Association
of BellTel Retirees Inc.
Tel:
212-685-4600
Tom Butler - TButler@Butlerassociates.com
Jason Fink - Jfink@ButlerAssociates.com
Victoria Carman -
VCarman@ButlerAssociates.com
_______________________________________________________________
Verizon
Retiree Proxies Want to Claw Back & Level Playing Field on Executive Pay
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