Verizon board OKs say on pay

Nov 02, 2007

Decision comes after majority shareholder vote

NEW YORK -- Verizon's board of directors yesterday approved a policy to give shareholders an advisory vote on executive compensation next year. The move comes after a proposal by shareholders passed narrowly with a 50.18 percent majority in May.

'Say on pay' proposals got majority support at seven companies in the last proxy season, according to the Corporate Library, but Verizon becomes one of the first major companies to adopt an advisory vote.

'This is a big plus for Verizon,' says the proposal's original sponsor, C. William Jones who leads the Association of Belltell Retirees. 'Even though it will be non-binding, I'm sure they're going to want a positive vote. It'll encourage them to be forthcoming and a little careful in what the compensation packages are.'

In a press release, Verizon director Sandra Moose said Verizon had been influenced by 'an ongoing dialogue with shareholders and others' since the proxy vote.

By Anna Snider