Verizon Shareholders’ Approve Landmark ‘Say on Pay’ Measure

A majority of Verizon shareholders want a say on executive pay, voting in favor of a CWA-backed resolution at the company's annual meeting May 3.

An independent recount confirmed the narrow 50.18 percent victory. The measure calls for shareholder approval of executive compensation packages.

Although shareholder resolutions in the United States are non-binding, the measure sends a strong message to Verizon's board. Like many other boards, it has ignored the public's anger and continued to grant excessive pay packages to top executives.

Two similar resolutions fell just short of approval at the Verizon meeting, each winning about 47 percent of the vote. One from the CWA Members' Relief Fund called for full disclosure by executive pay consultants. Another from the AFL-CIO Reserve Fund dealt with executives' severance.

The House of Representatives passed a "say on pay" measure sponsored by Rep. Barney Frank (D., Mass) in April that would mandate shareholder votes on compensation for corporate executives. Sen. Barrack Obama (D-Ill.) is expected to introduce a Senate version.