Group Of Verizon Retirees Opposing Exec 'Enormous Exit Packages'

COLD SPRING HARBOR, NY—A nonprofit group called Association of BellTel Retirees is opposing what they call golden parachutes at Verizon. The group, based in Cold Spring Harbor, represents retired shareholders. The group plans to present two proposals at Verizon's May shareholder meeting limiting excessive executive compensation packages.

Chairman of BellTel Jack Cohen said in a news release:

“During a pandemic, when so many people are out of work, who would oppose a ‘reasonable’ severance in the right circumstances? Some of these golden parachutes are so huge they make no economic sense and hurt the shareholders, who ought to have a say when they are above a certain size. Verizon should stop using accounting gymnastics to avoid a shareholder vote on these enormous exit packages.”

The proposals would require shareholder approval of new senior executive severance payments that are more than three times base salary.

Verizon estimated that current CEO Hans Vestberg's payout would be valued at $39.4 million, seven times his base salary.

BellTel Retirees also wants to see Verizon's senior clawback policy, expanding the qualification for conduct requiring corporate repayment from executives that they believe is currently too narrow.

“The issue of ‘willful misconduct’ ascribes a motive to any such actions, which is very easy to challenge but very difficult to prove,” Cohen explained.

“In cases of misconduct, it is the position of the Association that financial consequences should be incurred regardless of intent.”

The association was founded in 1996 to advocate for for retiree shareholders and monitor the corporation.