Wednesday, May 10, 2006

Verizon's reduction in CEO pay to deflect criticism

Verizon has substantially reduced pay of its CEO in anticipation of shareholder criticism.
From the WSJ news item:

"Last year, Verizon's board granted a long-term stock incentive package to Chief Executive Ivan Seidenberg that would have increased his 2005 compensation 50% from the year before to nearly $27 million. This past March, directors abruptly canceled a big chunk of that grant, initially valued at $7.6 million, before the increase had been widely publicized. The board acted -- with Mr. Seidenberg's approval -- amid concern about how shareholders would react to giving him a big raise after Verizon's stock had dropped 25% in 2005."

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