Verizon Communications becomes the latest company to hold a “say on pay” vote, reports the Associated Press.
At Verizon’s annual meeting in Louisville, Kentucky, shareholders will decide whether they approve the pay package for CEO Ivan Seidenberg and other top executives at the phone company.
While the company isn’t obligated to do anything in response to a no vote, a rejection by shareholders could influence the board. Should a no vote be ignored, calls to oust board members could ensue.
Verizon is one of the 15 companies adopting their own provision for letting shareholders vote on pay this year. Troubled Assets Relief Program fund recipients are also required to conduct similar votes.
Seidenberg’s salary is not viewed as obscene especially in light of the company’s consistent profits. A no vote is unlikely. His salary was valued at $20.2 million in 2008, not varying much from the prior two years. He is the best-paid CEO in the U.S. telecommunications industry, though much of his compensation is in stock that has fallen in value since it was granted.
Shareholder advisory group RiskMetrics has supported a yes vote, to the company’s advantage. The group recently recommended a no vote at Motorola, which gave investors their first say on pay vote on Monday, but 64 percent voted yes.
Intel will also provide say on pay at its annual meeting on May 20.