Verizon Mulling Action After Its Voters Approve Executive Compensation Vote

More than half of stockholders supported a resolution to examine the pay of the company's top five executives.
In the wake of Verizon Communications' historic stockholders vote on executive compensation, the company said it plans to "further consider" its policies on the issue because of the high stockholder interest and the active discussion of the issue.

The nonbinding vote was tabulated late last week with 50.2% of Verizon stockholders favoring a vote on the pay of the company's top five executives.

The Association of Belltel Retirees sponsored the resolution and the association's president, C. William Jones, indicated the group will sponsor a binding resolution next year if Verizon doesn't effectively address the issue.

"If the company does something about it we will be delighted," Jones told The New York Times. "If it doesn't, we will be back next year with a binding proposal, would be my guess."

Verizon said it will examine its executive compensation policies and indicated that it will look at the various forums, including Congress, where the issue has become more visible.

Verizon's chief executive Ivan Seidenberg, who received more than $20 million last year, became a poster boy on the issue after the Belltel Retirees and labor unions complained about his pay during a period when the company's earnings suffered. Verizon's financial reports and stock have recovered recently.

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