Verizon Shareholders' "Say on Pay" Resolution Adopted

An independent recount of shareholders' votes on the "Say on Pay" resolution at Verizon's May 3 annual meeting confirmed late last week that the CWA-backed executive compensation measure won majority support from stockholders, passing by 50.18 percent.

It was the first time that a resolution calling for shareholder approval of executive pay packages has been adopted at a major corporation.

While shareholder resolutions in the United States are non-binding, the measure sends a strong message to the company's board, which like many others has continued to grant excessive compensation packages to top executives despite growing public ire. The resolution asks the company to submit future executive pay packages to a shareholder vote.

Two similar resolutions dealing with executive compensation fell just short of approval but received substantial support. One, sponsored by the CWA Members' Relief Fund on full disclosure by executive compensation consultants, gained 47.01 percent support. Another, sponsored by the AFL-CIO Reserve Fund on executives' severance packages, won support from 46.94 percent of shareholders.

Reflecting the public's growing anger over corporate pay, the House of Representatives passed a "say on pay" measure sponsored by Rep. Barney Frank (D-Mass.) on April 20 that would mandate shareholder votes on the compensation for corporate executives. Presidential hopeful Sen. Barrack Obama (D-Ill.) is expected to introduce a companion bill in the Senate.