UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. )
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How to vote
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Online | Phone | At the virtual meeting |
Shareholders as of the close of business on March 11, 2024, the record date, may vote at the meeting.
If you are a registered shareholder or Verizon savings plan participant, you may vote online at www.envisionreports.com/vz, by telephone or by mailing a proxy card. If you hold your shares through a bank, broker or other institution, you will receive a voting instruction form that explains the various ways you can vote. We encourage you to vote your shares as soon as possible.
March 25, 2024
By Order of the Board of Directors,
William L. Horton, Jr.
Senior Vice President, Deputy General Counsel and Corporate Secretary
Verizon Communications Inc.
1095 Avenue of the Americas
New York, New York 10036
Important Notice Regarding Availability of Proxy Materials for Verizon’s Shareholder Meeting to be Held on May 9, 2024
The 2024 Proxy Statement and 2023 Annual Report on Form 10-K are available at www.edocumentview.com/vz.
We are making the proxy materials first available on or about March 25, 2024.
Date and time
Thursday, May 9, 2024
10:00 AM, Eastern Daylight Time
Online virtual meeting site
meetnow.global/VZ2024
Information on how to access the meeting, vote and ask questions at the meeting, can be found beginning on page 79 of the proxy statement. You will not be able to attend the meeting at a physical location.
Items of business
• | Elect the 10 Directors identified in the accompanying proxy statement |
• | Approve, on an advisory basis, Verizon’s executive compensation |
• | Ratify the appointment of the independent registered public accounting firm |
• | Act on the shareholder proposals described in the proxy statement that are properly presented at the meeting |
• | Consider any other business that is properly brought before the meeting |
The Verizon Board
From left to right: | |||
Clarence Otis, Jr. | Daniel Schulman | Hans Vestberg | Rodney Slater |
Carol Tomé | Shellye Archambeau | Vittorio Colao | Melanie Healey |
Gregory Weaver | Laxman Narasimhan | Mark Bertolini | Roxanne Austin |
A message from Hans Vestberg, our Chairman and CEO, and Clarence Otis, Jr., our Independent Lead Director
2023 was a critical year for Verizon, as we took several important steps to position ourselves for renewed growth and profitability, as well as continued leadership into the future.
Most significantly, at the beginning of 2023 we appointed the leadership team that will drive the next phase of Verizon’s growth. In the first quarter, we announced that four well-respected industry veterans would assume these new roles in the company:
• | Tony Skiadas, Chief Financial Officer |
• | Sowmyanarayan Sampath, CEO of Verizon Consumer |
• | Kyle Malady, CEO of Verizon Business |
• | Joe Russo, President of Global Networks and Technology |
That team hit the ground running, making significant changes to how we operate. Both the Consumer and Global Network organizations were restructured to enable a more regional, targeted market approach. The Consumer and Business teams also evolved their commercial models and employee incentives to increase their focus on providing the services and products that customers need and want while maintaining the profitability of the company.
The Finance team supported these efforts while simultaneously strengthening our balance sheet to allow us financial flexibility in the future. At the same time, the Global Network team continued to lay the foundation of our future mobility and broadband growth by expanding the coverage of our C-Band wireless spectrum throughout the country.
This leadership team’s work has already yielded strong results. In 2023:
• | We increased our wireless subscriber base by appproximately 1.5 million connections, expanding our wireless business that was already the largest in the country |
• | We grew our fixed wireless access subscriber base to more than 3 million – representing a significant business that did not exist a few years ago |
• | We grew our wireless service revenue, which reflects the recurring revenue from our wireless operations, by a healthy 3.2% |
These results are indicative of the momentum we have in the business as we enter 2024. This year we expect to continue to see the benefits of our strategic decision to invest in C-Band spectrum. C-Band gives us a competitive advantage in the areas where it is deployed and will be the basis for our wireless mobility and fixed wireless access growth for years to come.
While our strong operational and financial results were important, equally important was that we achieved them in the right way. From logging over 530,000 volunteer hours, to recycling or reusing nearly 47 million pounds of e-waste, to enabling our customers to avoid over 20 million metric tons of CO₂e, our V Team employees supported our communities throughout the year at the same time they were providing excellent service to our customers.
We look forward to building on our success in 2024.
Sincerely, | |
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Hans Vestberg Chairman and Chief Executive Officer |
Clarence Otis, Jr. Independent Lead Director |
Table of contents
Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
This summary highlights information contained in the proxy statement and does not contain all of the information you should consider. We encourage you to read the entire proxy statement before voting. For information regarding Verizon’s 2023 performance, please read Verizon’s 2023 Annual Report on Form 10-K.
2023 highlights | ||
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Wireless Service Revenue up 3.2% Raised dividend for 17th consecutive year | |
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MyPlan Launch Netflix + MAX bundle Most awarded for Wireless Network Quality - JD Power | |
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Consumer - Postpaid phone net adds improved compared to 2022 every quarter Business - 10 consecutive quarters with at least 125,000 postpaid phone net adds Broadband - >400,000 net adds per quarter |
Meeting information
Date and time May 9, 2024 at 10:00 AM, Eastern Daylight Time
Online virtual meeting The meeting will be held virtually via the Internet at meetnow.global/VZ2024, where you will be able to vote electronically and submit questions during the meeting.
Record date March 11, 2024
Meeting access, submission of questions and voting information can be found beginning on page 79.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Agenda and voting recommendations
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Item 1: Election of Directors | |
The Board of Directors recommends that you vote FOR the election of the Board’s nominees. | ||
The Director candidates nominated by our Board of Directors are all proven leaders with a strong sense of integrity and respect for differing viewpoints. As a group, they bring a mix of backgrounds, perspectives, skills, experiences and expertise that contributes to a well-rounded Board that is uniquely positioned to effectively oversee Verizon’s strategy and businesses. For additional information about the Director candidates and their respective qualifications, please see the “Governance” section beginning on page 1. |
Our nominees’ skills and experience | ||
9 | Consumer/B2B/retail | |
3 | Cybersecurity | |
9 | Financial expertise | |
2 | Marketing and brand management | |
5 | Regulatory/public policy | |
10 | Risk management | |
10 | Strategic planning | |
5 | Technology | |
4 | Telecommunications |
Board diversity*
40%
ethnic/racial diversity
30%
women
Board tenure and age*
7.3
years
average
tenure
64
years old
average
age
* | Based on our 10 nominees as of March 25, 2024. See Appendix A for the Board diversity disclosure required by Rule 5606 of the Nasdaq Stock Market (Nasdaq), which reflects the diversity of all 12 Directors serving as of March 25, 2024. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Our nominees at a glance
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Shellye Archambeau | Roxanne Austin | Mark Bertolini | Vittorio Colao | Laxman Narasimhan |
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Clarence Otis, Jr. | Daniel Schulman | Rodney Slater | Carol Tomé | Hans Vestberg |
Name | Committee membership* | Key skills and experience | ||||
Audit | Corporate Governance and Policy |
Finance | Human Resources | |||
Shellye Archambeau Former Chief Executive Officer, MetricStream, Inc. |
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Marketing and brand
management Risk management Technology | ||
Roxanne Austin President and CEO, Austin Investment Advisors |
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Cybersecurity Financial expertise Strategic planning | ||
Mark Bertolini Chief Executive Officer, Oscar Health, Inc. |
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Financial expertise Regulatory/public policy Strategic planning | ||
Vittorio Colao Former Chief Executive, Vodafone Group Plc |
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Consumer/B2B/retail Technology Telecommunications | ||
Laxman Narasimhan Chief Executive Officer, Starbucks Corporation |
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Consumer/B2B/retail Risk management Strategic planning | ||
Clarence Otis, Jr. Former Chairman and CEO, Darden Restaurants, Inc. Lead Director |
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Consumer/B2B/retail Financial expertise Risk management | |
Daniel Schulman Former President and CEO, PayPal Holdings, Inc. |
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Cybersecurity Strategic planning Technology | |||
Rodney Slater Senior Partner, Squire Patton Boggs LLP |
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Regulatory/public policy Risk management Strategic planning | ||
Carol Tomé Chief Executive Officer, United Parcel Service, Inc. |
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Consumer/B2B/retail Financial expertise Strategic planning | |||
Hans Vestberg Chairman and CEO, Verizon Communications Inc. |
Strategic planning Technology Telecommunications |
* | Committee memberships are as of March 25, 2024. |
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Independent | ![]() |
Committee Chair | ![]() |
Audit Committee Financial Expert |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Governance highlights
Our Board has adopted robust governance structures and practices to enhance our independent oversight, effectiveness and accountability to shareholders.
Independent |
• 11 of our 12 current Directors are independent • Strong independent Lead Director with clearly delineated duties • Regular executive sessions of independent Directors | |
Board effectiveness |
• Active Board refreshment plan with a focus on diversity, with six new Directors added since 2017, half of whom are women or diverse with respect to race or ethnicity • Orientation program for new Directors and continuing education for all Directors • Limits on other public board service • Annual Board and committee assessments • Average tenure goal for independent Directors | |
Accountability to shareholders |
• Annual election of all Directors by majority voting • Shareholder right to call special meetings • Proxy access right with market terms • No poison pill, and shareholder ratification required for any future poison pill • No dual-class shares or voting right restrictions • Robust stock ownership requirements for executive officers and Directors • Proactive year-round shareholder engagement program | |
2023
Environmental, Social and Governance (ESG) highlights |
• Issued fifth US$1 billion green bond, with final allocation completed and a sixth US$1 billion green bond issued in February 2024 • Set a new interim target to source renewable energy equivalent to 100% of our total annual electricity consumption by 2030 • Top 10 ranking and Telecom Industry Leader in Just Capital’s 2023 America’s Most JUST companies • Published third TCFD-aligned report |
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Item 2: Advisory vote to approve executive compensation | |
The Board of Directors recommends that you vote FOR this proposal. | ||
We are asking shareholders to approve, on an advisory basis, the compensation of our named executive officers, as described in the Compensation Discussion and Analysis and Compensation Tables beginning on pages 23 and 40, respectively. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Executive compensation program highlights
Our executive compensation program reflects Verizon’s commitment to industry-leading compensation and governance practices. For a detailed discussion of the executive compensation program, please see the Compensation Discussion and Analysis beginning on page 23.
Compensation strategy | • Align executives’ and shareholders’ interests • Attract, retain and motivate high-performing executives | |
Pay-for- performance essentials |
• Approximately 90% of named executive officers’ total compensation opportunity is variable, incentive-based pay • Defined benefit pension and supplemental executive retirement benefits frozen over 15 years ago • Quantitative ESG metric in Short-Term Incentive Plan (Short-Term Plan) | |
Best practice highlights | • Shareholder approval policy for severance benefits • No cash severance benefits for the Chief Executive Officer (CEO) • Significant executive share ownership requirements • Clawback policies • Anti-hedging policy • No tax gross-ups • No executive employment agreements |
The summary below shows the 2023 compensation for each of our named executive officers, as required to be reported in the Summary Compensation table pursuant to U.S. Securities and Exchange Commission (SEC) rules. For more information, please see the notes accompanying the Summary Compensation table beginning on page 40.
Name and principal position | Salary ($) | Bonus ($) | Stock awards ($) | Option awards ($) | Non-equity incentive plan compensation ($) | Change in pension value and nonqualified deferred compensation earnings ($) | All other compensation ($) | Total ($) | ||||||||
Hans Vestberg Chairman and Chief Executive Officer | 1,500,000 | 0 | 18,000,042 | 0 | 4,087,500 | 0 | 541,775 | 24,129,317 | ||||||||
Anthony Skiadas* Executive Vice President and Chief Financial Officer | 741,667 | 0 | 7,000,069 | 0 | 1,076,375 | 0 | 113,202 | 8,931,313 | ||||||||
Sowmyanarayan Sampath** Executive Vice President and Group CEO – Verizon Consumer | 1,016,667 | 0 | 8,500,049 | 0 | 1,716,750 | 0 | 146,496 | 11,379,962 | ||||||||
Kyle Malady** Executive Vice President and Group CEO – Verizon Business | 983,333 | 0 | 8,000,027 | 0 | 1,635,000 | 2,959 | 188,884 | 10,810,203 | ||||||||
Craig Silliman Executive Vice President and President – Verizon Global Services | 900,000 | 0 | 7,500,021 | 0 | 1,471,500 | 633 | 172,028 | 10,044,182 | ||||||||
Matthew Ellis* Former Executive Vice President and Chief Financial Officer | 444,551 | 0 | 7,000,052 | 0 | 517,750 | 0 | 4,990,096 | 12,952,449 |
* | Mr. Skiadas succeeded Mr. Ellis as Executive Vice President and Chief Financial Officer effective April 29, 2023. Prior to that appointment, Mr. Skiadas served as Verizon’s Senior Vice President and Controller. Mr. Ellis separated from Verizon on April 29, 2023. |
** | Mr. Sampath served as Executive Vice President and Group CEO – Verizon Business until March 2, 2023, and Mr. Malady succeeded Mr. Sampath in that role on that date. Prior to that appointment, Mr. Malady served as Executive Vice President and President – Global Networks and Technology. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
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Item 3: Ratification of auditors | |
The Board of Directors recommends that you vote FOR ratification. | ||
We are asking shareholders to ratify the Audit Committee’s appointment of Ernst & Young LLP (Ernst & Young) as Verizon’s independent registered public accounting firm for 2024. For information on fees paid to Ernst & Young in 2023 and 2022, please see page 59. |
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Item 4-10: Shareholder proposals | |
The Board of Directors recommends that you vote AGAINST each of the shareholder proposals. | ||
In accordance with SEC rules, we have included in this proxy statement proposals submitted by shareholders for consideration, if presented at the meeting. The proposals can be found beginning on page 64. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
We believe that good governance starts with an independent, effective and diverse Board. Our Board is one of Verizon’s most critical strategic assets. As such, the composition of the Board evolves along with our strategic needs for the future. We believe we are more likely to achieve sustainable growth in shareholder value when our Board has the right mix of skills, expertise and tenure, and can devote sufficient time to their duties as active and engaged members of our Board.
The Corporate Governance and Policy Committee is strategic and purposeful in its approach to refreshment and succession planning. The Committee considers the following key factors when nominating Directors:
• | Skills and experience. Verizon’s strategy is to extend our network leadership through continued innovation, grow our core business and provide our customers with best-in-class experiences, while maintaining the balanced capital allocation approach and financial discipline that our investors expect of us. In light of the Company’s strategy and expected future business needs, the Committee has identified the skills and experience listed below as important to be represented on the Board as a whole. |
• | Consumer/B2B/retail |
• | Cybersecurity |
• | Financial expertise |
• | Marketing and brand management |
• | Regulatory/public policy |
• | Risk management |
• | Strategic planning |
• | Technology |
• | Telecommunications |
• | Diversity. The Committee recognizes that a diverse set of viewpoints and practical experiences enhances the effectiveness of our Board in assessing the challenges and opportunities impacting our business and helping management achieve better outcomes. In evaluating Director candidates, the Committee considers how a candidate’s particular background, experience, qualifications, attributes and skills may complement, supplement or duplicate those of other prospective candidates. The Committee seeks a diverse group of candidates who possess the requisite judgment, background, skill, expertise and time, as well as diversity with respect to race, ethnicity and gender, to strengthen and increase the diversity, breadth of skills and qualifications of the Board. See Appendix A for the Board diversity disclosure required by Nasdaq Rule 5606. |
• | Age and tenure. The Committee believes it is important to bring new perspectives and talents to the Board on a regular basis. Verizon does not have term limits for Directors because the Board recognizes that Directors who have served on the Board for an extended period can provide valuable insight into Verizon’s operations and future based on their experience with, and understanding of, Verizon’s history, policies and objectives. As an alternative to term limits, the Board seeks to maintain an average tenure of nine years or less for its independent Directors. In addition, to encourage new viewpoints on the Board, the Board seeks to add at least one new Director every two years on average. We have exceeded this goal by adding six new Directors since 2017, half of whom are women or diverse with respect to race or ethnicity. Under Verizon’s Corporate Governance Guidelines, a Director must retire from the Board the day before the annual meeting of shareholders that follows his or her 72nd birthday. |
• | Board size. The Committee periodically evaluates whether to change the size of the Board based on the Board’s needs and the availability of qualified candidates. |
• | Board dynamics. The Committee considers each Director candidate’s individual contribution or potential contribution to the Board as a whole and strives to maintain one hundred percent active and collaborative participation. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Our Board’s independence
Verizon’s Corporate Governance Guidelines establish standards for evaluating Director independence and require that a substantial majority of the Directors be independent. The Board determines the independence of each Director under New York Stock Exchange (NYSE) and Nasdaq governance standards, as well as the more stringent standards included in the Corporate Governance Guidelines. These standards identify the types of relationships that, if material, could impair independence, and fix monetary thresholds at which the relationships are considered to be material. The Corporate Governance Guidelines are available on the Corporate Governance section of our website at www.verizon.com/about/investors/corporate-governance. The Corporate Governance and Policy Committee conducts an annual review of any relevant business relationships that each Director may have with Verizon and reports its findings to the full Board.
Based on the Committee’s recommendation, the Board has determined that all of the non-employee Director candidates meet the independence requirements of applicable law, the NYSE, Nasdaq and Verizon’s Corporate Governance Guidelines: Ms. Archambeau, Ms. Austin, Mr. Bertolini, Mr. Colao, Mr. Narasimhan, Mr. Otis, Mr. Schulman, Mr. Slater and Ms. Tomé. The Board also determined that Ms. Healey, who is not standing for re-election, and Mr. Weaver, who is not standing for re-election as a result of the retirement standard in our Guidelines, were independent.
Additionally, the Board has determined that each member of the Audit Committee and the Human Resources Committee meets the additional, heightened independence criteria applicable to such committee members under the applicable NYSE and Nasdaq rules.
The employers or former employers of Mr. Bertolini, Mr. Narasimhan, Mr. Schulman, and Ms. Tomé each made payments to Verizon for telecommunications services during 2023. In addition, during 2023 Verizon made payments to Mr. Bertolini’s former employer for fees relating to investment of pension plan assets, to Mr. Narasimhan’s employer for Starbucks gift cards purchased by Verizon customers, to Mr. Schulman’s former employer for processing fees relating to payments to and from our customers in connection with Verizon services and wireless devices, and to Ms. Tomé’s employer for shipping services. Applying the independence standards above, the Board considered the foregoing payments and determined that these general business transactions and relationships are not material and did not impair the ability of the Director to act independently. |
What ESG skills and experience do our Directors bring to the boardroom?
ESG is incorporated into strategic and operational decision-making at Verizon. Each of our Directors has skills and experience in one or more aspects of ESG, including:
• business ethics and compliance • cybersecurity and data privacy • diversity, equity and inclusion • environmental sustainability, including renewable energy • governance • network reliability and resilience • regulatory and public policy trends • responsible business and corporate social responsibility • risk management • talent attraction, retention and development |
Director nominations
The Corporate Governance and Policy Committee considers and recommends candidates for our Board. The Committee reviews all nominations submitted to Verizon, including individuals recommended by shareholders, Directors or members of management. The Committee also retains executive search firms from time to time to help identify and evaluate potential candidates.
Any shareholder who wishes to recommend a Director candidate to the Committee for its consideration should write to the Assistant Corporate Secretary at the address provided under “Contacting us.” A recommendation for a Director candidate should include the candidate’s name, biographical data and a description of the candidate’s qualifications in light of the requirements described below. If we make any material changes to the Committee’s procedure for considering and nominating candidates, we will file a report with the SEC and post the information on the Corporate Governance section of our website at www.verizon.com/about/investors/corporate-governance.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The Committee reviews the qualifications of each candidate for election or re-election to the Board. For incumbent Directors, this review includes the Director’s participation in and contributions to the activities of the Board, the Director’s independence and past meeting attendance, and whether the Director’s skills and expertise continue to align with Verizon’s long-term business strategy. After the Committee evaluates all candidates for Director, it presents its recommendation to the Board. The Committee also discusses with the Board any candidates who the Committee considered but did not recommend for election or re-election.
Before being nominated, each candidate for election and each incumbent Director standing for re-election must consent to stand for election or re-election and provide certain representations required under Verizon’s bylaws. Each candidate who is standing for election must also submit an irrevocable resignation, which will only become effective if (i) our Board or any Committee determines that any of the required representations were untrue in any material respect, or that the candidate breached any obligation under Verizon’s bylaws, or (ii) the candidate does not receive a majority of the votes cast at the annual meeting of shareholders, and the independent members of our Board decide to accept the resignation. Any decision about a resignation following an incumbent Director’s failure to obtain a majority of the votes cast will be disclosed within 90 days after the election results are certified.
Director criteria, qualifications and experience
To be eligible for consideration, any proposed Director candidate must:
• | Possess exemplary ethics and integrity |
• | Have proven judgment and competence |
• | Have professional skills and experience that align with the needs of Verizon’s long-term business strategy and complement the experience represented on the Board |
• | Have demonstrated the ability to act independently and be willing to represent the long-term interests of all shareholders and not just those of a particular constituency or perspective |
• | Be willing and able to devote sufficient time to fulfill responsibilities to Verizon and our shareholders |
Election process
Verizon’s Directors are elected annually for a term of one year. We believe annual elections are consistent with good corporate governance because they foster Director accountability and increase shareholder confidence. Verizon’s bylaws require Directors to be elected by a majority of the votes cast in an uncontested election.
Nominees for election
Our Board has nominated the 10 candidates below, all of whom currently serve as Directors of Verizon, for election as Directors.
Each candidate has consented to stand for election, and we do not anticipate that any candidate will be unavailable to serve. If any candidate were to become unavailable before the election, the proxy committee could vote the shares it represents for a substitute named by the Board. Each candidate has submitted an irrevocable, conditional letter of resignation that our Board will consider if that candidate fails to receive a majority of the votes cast.
Biographical information for each Director nominee follows, including career highlights, the key skills and experience that we believe each Director nominee brings to our Board, and other public board directorships. All of our nominees bring more qualifications to the Board than those highlighted in their biographies, and these are reflected in the aggregate Board composition statistics provided in the Proxy Summary.
When deciding to re-nominate these Directors, the Corporate Governance and Policy Committee and the Board considered each Director’s individual qualifications, as well as the aggregate of skills and experience represented on the Board, in light of the Company’s strategy and expected future business needs.
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The Board of Directors recommends that you vote FOR the election of the following Director candidates. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Shellye Archambeau | ||
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Independent Director since: 2013 Age: 61 Committees: Audit | |
Key skills and experience:
• | Leadership: Highly regarded and accomplished executive with over 30 years of experience building and scaling consumer and B2B businesses in the technology industry. As CEO of MetricStream, led the company’s transformation into a leader in Governance, Risk and Compliance solutions. |
• | Marketing and brand management: Served as Chief Marketing Officer at two public companies (Loudcloud and NorthPoint Communications), leading the design and implementation of all sales and marketing strategies and driving revenue growth. As President of Blockbuster.com, launched the entertainment retailer’s first online presence. |
• | Risk management: Acquired significant expertise with integrated enterprise risk management, regulatory compliance functions and quality, vendor and audit management software solutions across a wide array of industries during her tenure at MetricStream, as well as through service on the audit committees of Verizon, Okta and Arbitron. |
• | Technology: Gained valuable experience developing and marketing emerging technology applications and solutions, including internet infrastructure, cloud-based and identity security services, business software platforms, e-commerce and digital media. |
Career highlights:
• | MetricStream, Inc., a leading provider of governance, risk, compliance and quality management |
° | Chief Executive Officer (2002-2018) |
• | Executive positions at Loudcloud, Inc., NorthPoint Communications, Blockbuster Inc. and IBM (domestic and international) (1984-2002) |
Other public company boards:
Okta, Inc. (since 2018)
Roper Technologies, Inc. (since 2018)
Nordstrom, Inc. (2015-2022)
Roxanne Austin | ||
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Independent Director since: 2020 Age: 63 Committees: Audit (Chair)
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Key skills and experience:
• | Leadership: Seasoned leader who served as CEO of Move Networks, President and COO of DIRECTV, and CFO of Hughes Electronics. Named 2018 Director of the Year – Corporate Leadership and Service by the Forum for Corporate Directors and one of the most influential directors in the board room by the National Association of Corporate Directors in 2022 and 2013. Serves as co-chair of the annual Corporate Governance Conference at Northwestern’s Kellogg School of Management. |
• | Cybersecurity: Acquired significant cybersecurity experience through her extensive management and operating roles in a range of technology industries, including service as a director of CrowdStrike, a leader in cloud-delivered endpoint protection. |
• | Financial expertise: Developed a comprehensive background in finance and accounting as a public company audit committee member, CFO of Hughes Electronics and a partner at Deloitte & Touche LLP. Chaired the Mid Market Investment Advisory Committee of EQT Partners from 2017 to 2023. |
• | Strategic planning: Oversaw a dramatic turnaround of the business within one year of her arrival at DIRECTV, with cash flow increasing from negative $400 million annually to cash flow positive by $400 million, and revenue increasing by 40%. Overhauled customer service at DIRECTV, resulting in the company winning J.D. Power’s award ranking #1 in customer satisfaction. |
Career highlights:
• | President and Chief Executive Officer of Austin Investment Advisors, a private investment and consulting firm (2003-present) |
• | President and Chief Executive Officer of Move Networks, Inc., an IP-based television delivery service (2009-2010) |
• | President and Chief Operating Officer of DIRECTV, Inc., a digital television entertainment service (2001-2003) |
• | Chief Financial Officer and various executive positions at Hughes Electronics Corporation (1993-2001) |
• | Audit Partner and various audit positions at Deloitte & Touche LLP (1983-1993) |
Other public company boards:
AbbVie, Inc. (since 2013)
CrowdStrike Holdings, Inc. (since 2018)
Freshworks Inc. (since 2021)
Abbott Laboratories Inc. (2000-2022)
Teledyne Technologies Incorporated (2006-2021)
Target Corporation (2002-2020)
Ericsson (2008-2016)
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Mark Bertolini | ||
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Independent Director since: 2015 Age: 67 Committees: Finance (Chair) | |
Key skills and experience:
• | Leadership: Recognized as an accessible, forward-thinking and solutions-oriented leader. Transformed Aetna from a traditional health insurance company to a consumer-oriented health care company focused on delivering holistic integrated care to local communities and serving over 46 million people. |
• | Financial expertise: Developed deep financial and risk management expertise in his executive roles at Aetna and as a board member of MassMutual Life Insurance Company, a leading life insurance mutual company. Served as Co-Chief Executive Officer of Bridgewater Associates, the world’s largest hedge fund, from 2022 to 2023, and continues to serve on the board of Bridgewater. |
• | Regulatory/public policy: A national health care thought leader with extensive regulatory and public policy experience. Successfully navigated changes in the health insurance marketplace resulting from the Affordable Care Act and led Aetna through antitrust reviews of various acquisitions and proposed acquisitions. |
• | Strategic planning: Led Aetna through a period of strategic and regulatory transformation and domestic and international growth through strategic acquisitions and dispositions, culminating in the $78 billion acquisition of Aetna by CVS completed in 2018. |
Career highlights:
• | Chief Executive Officer of Oscar Health, Inc., a health insurance company built around a full stack technology platform (April 2023-present) |
• | Co-Chief Executive Officer of Bridgewater Associates, LP, a global investment management firm (2022-March 2023) |
• | Aetna Inc., a multi-national, Fortune 100 diversified healthcare benefits company |
° | Chairman (2011-2018) | ||
° | Chief Executive Officer (2010-2018) | ||
° | President (2007-2010) | ||
° | Other executive positions (2003-2007) |
• | Executive positions at Cigna, NYLCare Health Plans and SelectCare, Inc. (1985-2003) |
Other public company boards:
Oscar Health, Inc. (since April 2023)
CVS Health Corporation (2018-2020)
Vittorio Colao | ||
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Independent Director since: 2022 Age: 62 Committees: Corporate Governance and Policy | |
Key skills and experience:
• | Leadership: Built and transformed Vodafone Group Plc through organic growth, acquisitions and sales into one of the world’s largest communications companies with mobile operations in 24 countries and partnerships in over 40 more countries. |
• | Consumer/B2B/retail: Grew Vodafone to serve, directly and through joint ventures, approximately 640 million mobile customers, 21 million broadband customers and 14 million TV customers. Additional consumer experience with RCS MediaGroup, a leading Italian publishing company. |
• | Technology: Led Vodafone in the rapid and continuous development of mobile and other communications technology, with intensive capital spending to enhance high speed mobile networks, provide broadband and enterprise services, enhance the secure exchange of data, and develop 5G and the internet of things. |
• | Telecommunications: Brings a valuable global perspective on, and extensive operational experience with, the rapidly changing telecommunications industry. Led Italy’s efforts to roll out broadband and 5G connectivity across the country as Italian Minister for Innovation, Digital Transition and Space. Provides unique insight into Verizon Wireless’ business as a result of his five-year tenure on the Board of Representatives when Verizon Wireless was still a joint venture between Vodafone and Verizon. |
Career highlights:
• | Italian Minister for Innovation, Digital Transition and Space (2021-2022) |
• | Vodafone Group Plc, a global mobile communications company |
° | Chief Executive (2008-2018) | ||
° | Director (2006-2018) | ||
° | Other executive positions, including Regional Chief Executive Officer for Southern Europe, Middle East and Africa (1999-2004) |
• | Member, Verizon Wireless Board of Representatives (2008-2013) |
• | Senior Advisor, Vice Chairman EMEA, General Atlantic (2019-2021; 2023-present) |
Other public company boards:
Unilever PLC and Unilever N.V. (2015-2021)
Mr. Colao previously served on our Board from 2019 to 2021.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Laxman Narasimhan | ||
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Independent Director since: 2021 Age: 56 Committees: Audit | |
Key skills and experience:
• | Leadership: Insightful and strategic leader with wide experience across the consumer goods sector and a proven track record in developing purpose-led brands, including as CEO of Starbucks and Reckitt Benckiser Group Plc, a global consumer health, hygiene and nutrition company. Credited with improving sales and profit while managing approximately $18 billion in revenue at businesses across 100 countries and 125,000 employees as CEO of PepsiCo’s Latin America, Europe and Sub-Saharan Africa operations. |
• | Consumer/B2B/retail: Provides valuable expertise and thought leadership in helping complex, global consumer-facing businesses improve demand and widespread appeal for core brand name labels. Prior to joining Starbucks, Reckitt Benckiser and PepsiCo, spent 19 years at McKinsey & Company, focusing on its consumer, retail and technology practices in the United States, Asia and India. |
• | Risk management: Developed significant risk management experience, including supply chain risk management experience, while piloting Reckitt Benckiser through the supply chain disruptions of the COVID-19 pandemic. |
• | Strategic planning: Articulated corporate purpose at Reckitt Benckiser and led the company through a major strategic transformation and a return to sustainable growth. Eliminated complexity and simplified operations in order to remain agile and manage surging demand for certain consumer products during the COVID-19 pandemic. |
Career highlights:
• | Starbucks Corporation, the premier roaster, marketer and retailer of specialty coffee in the world |
° | Chief Executive Officer (2023-present) | ||
° | Chief Executive Officer-elect (2022-2023) |
• | Chief Executive Officer of Reckitt Benckiser Group Plc, a global consumer-goods company (2019-2022) |
• | PepsiCo, Inc., a leading global food and beverage company |
° | Global Chief Commercial Officer (2019) | ||
° | Chief Executive Officer, Latin America, Europe and Sub-Saharan Africa (2017-2019) | ||
° | Other executive positions (2012-2017) |
• | McKinsey & Company (1993-2012) |
Other public company boards:
Starbucks Corporation (since 2023)
Reckitt Benckiser Group Plc (2019-2022)
Clarence Otis, Jr. (Lead Director) | ||
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Independent Director since: 2006 Age: 67 Committees: Audit | |
Key skills and experience:
• | Leadership: Led Darden Restaurants, Inc., the largest company-owned and operated full-service restaurant company in the world, as CEO for 10 years, achieving sales growth of over 75% during the period. Known as a purpose-driven and values-based leader, with Darden being recognized by Fortune magazine for four consecutive years during his tenure as one of its 100 Best Companies to Work For. Named one of the most influential directors in the board room by the National Association of Corporate Directors in 2019. |
• | Consumer/B2B/retail: Brings deep and valuable insights into consumer services and retail operations gleaned from his experience leading a Fortune 500 company that owned well-known national consumer brands including Olive Garden, LongHorn Steakhouse, Red Lobster and Capital Grille. Further consumer and retail expertise through board position at VF Corporation, which owns well-known national brands including Timberland and North Face. |
• | Financial expertise: Gained substantial financial expertise through, among other roles, investment banking positions of increasing seniority over 12 years, the CFO role at Darden, serving as a director of the Federal Reserve Bank of Atlanta and as trustee or director of mutual funds pursuing a wide array of investment strategies. |
• | Risk management: Acquired significant expertise with financial risk assessment and enterprise risk management during his career in investment banking and at Darden, as well as through his many years of service on the Federal Reserve Bank of Atlanta Board, the audit committees of VF Corporation and Verizon, the Investment & Capital Markets Committee of Travelers and as a trustee of 138 funds within the MFS Mutual Funds complex. |
Career highlights:
• | Darden Restaurants, Inc. |
° | Chairman (2005-2014) | ||
° | Chief Executive Officer (2004-2014) | ||
° | Other executive positions (1995-2014) |
• | Director of the Federal Reserve Bank of Atlanta (2010-2015) |
• | Investment banker and lawyer specializing in securities and finance |
Other public company boards:
The Travelers Companies, Inc. (since 2017)
VF Corporation (since 2004)
MFS Mutual Funds complex (since 2017)
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Daniel Schulman | ||
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Independent Director since: 2018 Age: 66 Committees: Human Resources (Chair) | |
Key skills and experience:
• | Leadership: Built a career as a successful and dynamic leader in the fiercely competitive technology and e-commerce space, with a proven track record of creating shareholder value through innovation and a focus on values at numerous companies, including PayPal, which reached approximately 430 million active accounts across more than 200 markets, Priceline, and Virgin Mobile USA. |
• | Cybersecurity: Gained extensive cybersecurity and risk management experience as a director of Symantec Corporation, a global leader in cybersecurity, for nearly 20 years, including serving as the independent chairman for 6 years. |
• | Strategic planning: Spearheaded innovation and growth at start-ups and established companies, including Priceline, where he grew annual revenues from $20 million to nearly $1 billion over two years, Virgin Mobile USA, where he successfully built a pre-paid cellphone business, American Express, where he expanded global mobile and online payment services, and PayPal, where he achieved significant revenue growth. |
• | Technology: Acquired significant expertise in mobile technology and digital innovation over a long career spanning the telecommunications, financial technology and e-commerce industries. |
Career highlights:
• | PayPal Holdings, Inc., a leading online payments company |
° | President and Chief Executive Officer (2015-September 2023) | ||
° | President and CEO-Designee (2014-2015) |
• | Group President of the Enterprise Group at American Express Company (2010-2014) |
• | President of the Prepaid Group at Sprint Nextel Corporation (2009-2010) |
• | Founding CEO of Virgin Mobile USA, Inc. (2001-2009) |
• | President and CEO of Priceline Group, Inc. |
• | Various executive positions, including President of the Consumer Markets Division, at AT&T, Inc. |
Other public company boards:
Lazard, Inc. (since February 2024)
Cisco Systems, Inc. (since October 2023)
PayPal Holdings, Inc. (2015-December 2023)
NortonLifeLock Inc. (formerly Symantec Corporation) (2000-2019)
Rodney Slater | ||
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Independent Director since: 2010 Age: 69 Committees: Corporate Governance and Policy | |
Key skills and experience:
• | Leadership: Visionary and thoughtful leader in the transportation and infrastructure space, with extensive experience gained through service as U.S. Secretary of Transportation and previous board positions at Kansas City Southern, Transurban Group and Delta Air Lines. Nationally recognized for innovative infrastructure development and forging strategic public and private partnerships. As U.S. Secretary of Transportation, oversaw national transportation policy, spearheaded several historic legislative measures, including record funding for surface transportation investment and aviation safety and security, promoted intermodal transportation systems and led effort to significantly expand high speed rail network. |
• | Regulatory/public policy: Brings a strategic, collaborative and result-oriented approach to oversight of regulatory and public policy issues developed over his long and accomplished career in both the public and private sectors. |
• | Risk management: Globally recognized advisor for reputational risk management, corporate compliance and emergency preparedness, having served as an independent monitor/advisor for Toyota, Takata and Fiat Chrysler as these companies worked through safety issues, and coordinated the Federal Highway Administration’s response to several major natural disasters. |
• | Strategic planning: Implemented a groundbreaking strategic plan for the U.S. Department of Transportation to expand its focus on safety, mobility and access, economic development and trade, the environment and national security. Developed an innovative financing and contracting program at the Federal Highway Administration that produced significant operational and cost efficiencies. |
Career highlights:
• | Squire Patton Boggs LLP, a law firm |
° | Senior Partner (2023-present) | ||
° | Partner (2001-2023) |
• | U.S. Secretary of Transportation (1997-2001) |
• | Administrator, Federal Highway Administration (1993-1997) |
• | Various policy positions with the State of Arkansas |
Other public company boards:
Stagwell Inc. (since 2021)
EVgo Inc. (2021-May 2023)
Kansas City Southern (2001-2019)
Transurban Group (2009-2018)
7
Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Carol Tomé | ||
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Independent Director since: 2021 Age: 67 Committees: Finance | |
Key skills and experience:
• | Leadership: Accomplished and skillful leader with a proven track record in growing and innovating at both consumer and B2B businesses with large geographic footprints and employee bases. Guided UPS through an unprecedented surge in demand while improving competitiveness and reducing bureaucracy during the COVID-19 pandemic. Spearheaded initiatives to improve the employee experience and maintain a strong talent pipeline. Demonstrated strong financial leadership as CFO for over 18 years at Home Depot, with responsibility for all corporate finance matters including financial reporting, financial planning and analysis, financial operations, internal audit, investor relations and tax. Led strategic business development during a critical time for Home Depot, as well as the IT and cybersecurity function. |
• | Consumer/B2B/retail: Leading efforts at UPS to optimize B2B profits through the use of automated technologies and enhanced distribution networks to improve delivery volumes. Reinvigorated Home Depot’s consumer business while navigating the Great Recession and housing crisis. |
• | Financial expertise: Gained extensive and deep corporate finance expertise during her tenure at Home Depot, during her service on the Board of the Federal Reserve Bank of Atlanta, where she served as both Vice-Chair and Chair of the Board, and during her tenure as chair of the audit committee of UPS from 2018 to 2020. |
• | Strategic planning: Driving efforts to strengthen network capabilities and supply chain infrastructure at UPS through investments in digital technologies. Played a pivotal role in strategic business development at Home Depot as it transformed into one of the world’s largest retailers – during her tenure as CFO, Home Depot doubled sales to over $108 billion and generated a 450% increase in shareholder value. |
Career highlights:
• | Chief Executive Officer of United Parcel Service, Inc., the world’s largest package delivery company and a premier provider of global supply chain management solutions (2020-present) |
• | The Home Depot, Inc., one of the world’s largest home improvement retailers |
° | Executive Vice President – Corporate Services and Chief Financial Officer (2007-2019) | |
° | Chief Financial Officer (2001-2007) | |
° | Other executive positions (1995-2001) |
• | Director of the Federal Reserve Bank of Atlanta (2008-2013) |
Other public company boards:
United Parcel Service, Inc. (since 2003)
Cisco Systems, Inc. (2019-2020)
Certain Fidelity Mutual Funds (2017)
Ms. Tomé previously served on our Board in 2020.
Hans Vestberg (Chairman) | ||
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Director since: 2018 Age: 58 | |
Key skills and experience:
• | Leadership: Driving Verizon’s leadership position in the deployment of 5G technology and multi-access edge computing in the U.S. Built an industry-leading telecommunications software and services organization at Ericsson, one of the world’s largest telecommunications companies. Member of the board of directors of the United Nations Foundation that actively works with the U.N.’s Sustainable Development Goals. Effectively navigated the challenges of the COVID-19 pandemic, creating a cohesive workplace culture with a focus on diversity, equity and inclusion. |
• | Strategic planning: Architect of Verizon’s “one network for all” 5G strategy. Implemented bold and innovative strategic changes, including Verizon 2.0, the transformation of Verizon’s operating model to a customer-focused business served by industry-leading networks, as well as Ericsson’s successful diversification into the software and services business from its traditional hardware-centric business. |
• | Technology: Gained significant expertise in mobile technology and telecommunications network architecture as Verizon’s Chief Technology Officer and over his 25-year career at Ericsson. |
• | Telecommunications: Brings to the Board extensive operational and strategic experience and a deep understanding of the challenges and opportunities presented in the evolving global telecommunications landscape, as well as in-depth knowledge of Verizon’s businesses. |
Career highlights:
• | Verizon Communications Inc. |
° | Chairman (2019-present) and Chief Executive Officer (2018-present) | ||
° | Executive Vice President, President – Global Networks and Chief Technology Officer (2017-2018) |
• | Ericsson |
° | President and Chief Executive Officer (2010-2016) | ||
° | Chief Financial Officer (2007-2009) | ||
° | Other executive positions throughout the global operations |
Other public company boards:
BlackRock, Inc. (since 2021)
8
Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The membership, structure, policies and practices of our Board and its committees promote the effective exercise of the Board’s role in the governance of Verizon. In addition, our Corporate Governance Guidelines provide a framework for the Board’s operations and address key governance practices. The Corporate Governance and Policy Committee monitors best practices and developments in corporate governance, considers the views of Verizon’s shareholders, and periodically recommends changes to the Board’s policies and practices, including the Corporate Governance Guidelines. Our Directors provide input on the operation of the Board annually, as part of the Board assessment process, and as warranted throughout the year.
Board leadership structure
Verizon’s governance framework provides the Board with the flexibility to select the appropriate Board leadership structure for the Company. In making this leadership structure determination, the Board considers many factors, including the specific needs of the business and the long-term interests of our shareholders.
Given the dynamic and highly competitive environment in which Verizon operates, the Board believes that Verizon and our shareholders are best served by a Chairman who has broad and deep knowledge of our industry, providing valuable knowledge to the Board and increasing the information available to the Board, and who has the vision, energy and experience to position Verizon as the leader of transformational change in the communications ecosystem. Based on these considerations, the Board has determined that, at this time, our CEO, Hans Vestberg, is the Director best qualified to serve in the role of Chairman. As CEO, Mr. Vestberg also has a greater understanding of the strategies and tactics of the Company and can most readily identify potential opportunities and challenges.
To maintain an appropriate level of independent oversight, checks and balances in its governance, and consistent with the Corporate Governance Guidelines, the independent members of the Board have elected an independent Lead Director who has the responsibilities described under “Role of the Lead Director.” Clarence Otis, Jr. currently serves as Lead Director. Mr. Otis acquired significant expertise in financial risk assessment and enterprise risk management as a member of the Federal Reserve Bank of Atlanta Board, multiple public company boards and audit committees, and as CEO of Darden Restaurants, and is well qualified to lead the Board in fulfilling its oversight role.
The Lead Director and our Chairman and CEO meet and speak with each other regularly about the Company’s strategy and operations and the functioning of the Board. The Lead Director provides a tangible independent source of authority and serves as an impartial resource for the Board to express its views regarding management. In addition, the Lead Director represents the Board in communications with shareholders and other stakeholders regularly, and any shareholder or interested party may communicate directly with the Lead Director.
All Directors play an active role in overseeing Verizon’s business at both the Board and committee level. Every Director receives the agenda for each Board meeting in advance and can request changes. In addition, all Directors have unrestricted access to the Chairman and the senior leadership team at all times.
The Board believes that shareholders are best served by this current leadership structure because it features an independent Lead Director who provides independent and objective oversight, and who can express the Board’s positions in a forthright manner. |
Clarence Otis, Jr. Lead Director
Role of the Lead Director
• Promotes a strong Board culture, including encouraging and facilitating active participation of all Directors • Approves the agenda, schedule and materials for all Board meetings, in consultation with the Chairman • Is available to advise the committee chairs in fulfilling their designated responsibilities • Acts as principal liaison with the Chairman • Chairs executive sessions, including those held to evaluate the CEO’s performance and compensation • Chairs any meeting of the Board if the Chairman is not present • Calls Board meetings and executive sessions as needed • Leads the Board’s annual self-evaluation • Oversees the process for CEO succession planning along with the Human Resources Committee • Acts as a primary point of contact for Board communication with major shareholders and other key stakeholders, as appropriate |
9
Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
This structure also strengthens our independent Directors’ ability to be fully involved in the Board’s operations and decision-making, and to fulfill their risk management and oversight responsibilities.
Board meetings and executive sessions
In 2023, our Board of Directors held 11 meetings, including six regularly scheduled meetings and five special meetings.
No incumbent Director attended fewer than 75% of the total number of meetings of our Board and the committees to which the Director was assigned in 2023. Directors standing for re-election are expected to attend the annual meeting of shareholders. In 2023, all but one Director attended the annual meeting.
The Corporate Governance Guidelines require the independent Directors to meet in executive session without any members of management present at least twice a year to review and evaluate the performance of the Board and to evaluate the performance and approve the compensation of the CEO. In practice, the independent members of our Board typically meet in executive session during each regularly scheduled Board meeting.
Service on other boards and time commitments
Based on the increasing demands placed upon directors of public companies and the need to devote sufficient time to fulfill their responsibilities effectively, the Board has a policy that a Director who is an executive officer of a public company should serve on no more than two public company boards, and other Directors should serve on no more than four public company boards. In addition, members of the Audit Committee should serve on no more than two other public company audit committees. All of our Directors are in compliance with these policies, which can be found in the Corporate Governance Guidelines.
When the Corporate Governance and Policy Committee identifies and evaluates Director candidates, it considers their qualifications along with their other time commitments to determine whether the candidate can devote the necessary time for effective service on the Board. Each year when considering incumbent Directors for re-nomination, the Committee considers the extent to which each incumbent Director is prepared for and actively participates in Board and Committee meetings, to ensure that each incumbent Director who is re-nominated is devoting sufficient time to fulfill his or her responsibilities to the Company and its shareholders.
Board committees
Our Board of Directors has established four standing committees: the Audit Committee, the Corporate Governance and Policy Committee, the Finance Committee and the Human Resources Committee. Each committee has a written charter that defines its specific responsibilities. The chair of each committee approves the agenda and materials for each meeting. Each committee has the authority to retain independent advisors to assist it in carrying out its responsibilities.
Our committee meetings are not held concurrently, which enables our Directors to sit on multiple committees. Our newly appointed Directors also attend all committee meetings for a period prior to being appointed to any particular committee, which gives them a broad-based introduction to the Company and allows them to understand the inner workings of all committees. |
Beyond the boardroom
Engagement outside of Board meetings provides our Directors with additional insight into our business and our industry. It also gives them valuable perspectives on the performance of our Company, the Board, our CEO and other members of senior management, as well as on the Company’s strategic direction.
• Our independent Directors have discussions with each other and with our CEO, and have informal individual and small group meetings with high potential members of our senior management team in order to gain insight into the Company’s management development program and succession pipeline. • Our committee chairs and Lead Director meet and speak regularly with each other and with members of our management in connection with planning for meetings. All Directors are encouraged to provide suggestions for meeting agendas and materials. • Our Directors periodically attend “deep dives” on current topics of interest and technology training as part of their ongoing Director education program. • Our Directors receive weekly updates on recent developments, press coverage and current events that relate to our business, as well as monthly business operation reviews and analyst reports. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Key responsibilities and activities
• Assess and discuss with management Verizon’s significant business risk exposures (including those related to cybersecurity, data privacy, data security, bribery and corruption, and certain environmental and climate-related risks), and oversee management’s programs and policies to monitor, assess and manage such exposures • Assess Verizon’s overall control environment, including controls related to financial reporting, disclosure, compliance and significant financial and business risks • Appoint, approve fees for, assess the independence and oversee the work of the independent registered public accounting firm • Oversee financial reporting and disclosure matters, including review of the annual and quarterly reports on Forms 10-K and 10-Q, earnings releases and guidance, and the process for the CEO and Chief Financial Officer (CFO) certifications • Oversee Verizon’s internal audit function and review significant internal audit findings and recommendations • Assess Verizon’s compliance processes and programs, including the Code of Conduct • Review the Chief Compliance Officer’s annual report regarding anti-corruption compliance, compliance with significant regulatory obligations, export controls and data protection • Assess policies and procedures for executive officer expense accounts and perquisites, including the use of corporate assets • Assess procedures for handling complaints and confidential, anonymous employee submissions relating to accounting, internal accounting controls or auditing matters • Review reports and disclosures of significant conflicts of interest and related person transactions The Board has determined that each of Ms. Austin, Ms. Archambeau, Mr. Narasimhan, Mr. Otis and Mr. Weaver is an audit committee financial expert. |
Members Roxanne Austin (Chair) Shellye Archambeau Laxman Narasimhan Clarence Otis, Jr. Gregory Weaver 2023 meetings 11 |
Key responsibilities and activities
• Evaluate the structure and practices of our Board and its committees, including size, composition, independence and operations • Recommend changes to our Board’s policies or practices or the Corporate Governance Guidelines • Identify and evaluate the qualifications of Director candidates and recommend to the Board candidates for election as Directors • Recommend Directors to serve as members of each Board committee and as committee chairs • Review potential related person transactions • Facilitate the annual assessment of the performance of the Board and its committees • Serve as hub for oversight of ESG, including ESG commitments, reporting and engagement, corporate responsibility and sustainability • Oversee Verizon’s position and engagement on important public policy and technology issues, including those relating to political contributions, lobbying activities and human rights, that may affect our business and reputation • Review the activities of Verizon’s community and social impact initiatives, including philanthropic activities |
Members Shellye Archambeau (Chair) Vittorio Colao Melanie Healey Laxman Narasimhan Rodney Slater 2023 meetings 5 |
11
Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Key responsibilities and activities
• Monitor Verizon’s capital needs, financing arrangements and ability to access the capital markets • Monitor expenditures under the annual capital plan approved by our Board • Review Verizon’s policies and strategies for managing currency, interest rate, renewable energy and counterparty exposures • Review and approve Verizon’s derivatives policy, and monitor the use of derivatives, including our renewable power purchase agreement strategy • Review Verizon’s insurance and self-insurance programs • Oversee the investment of pension assets and the funding of pension and other postretirement benefit obligations |
Members Mark Bertolini (Chair) Roxanne Austin Vittorio Colao Clarence Otis, Jr. Carol Tomé Gregory Weaver 2023 meetings 5 |
Key responsibilities and activities
• Oversee the development of Verizon’s executive compensation program and policies • Approve corporate goals relevant to the CEO’s compensation • Evaluate the CEO’s performance and recommend his compensation to the Board • Review and approve compensation and benefits for selected senior managers • Consult with the CEO on talent development • Oversee succession planning and assignments to key leadership positions • Oversee human capital management, including with respect to employee diversity, equity and inclusion; talent acquisition, retention and development; employee engagement; pay equity; and corporate culture • Review and make determinations under Verizon’s clawback policies • Review the impact of Verizon’s executive compensation policies and practices, and the performance metrics underlying the compensation program, on Verizon’s risk profile • Review and recommend non-employee Director compensation |
Members Daniel Schulman (Chair) Mark Bertolini Melanie Healey Clarence Otis, Jr. Rodney Slater 2023 meetings 5 |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Our Board conducts a comprehensive annual assessment to enhance the effectiveness of the Board and its committees and to continue to reflect evolving best practices in their processes. The Lead Director generally leads the assessment process, but the Board periodically engages a third-party consulting firm to bring an outside perspective to the process. As part of the annual assessment, each Director completes a detailed written questionnaire designed to elicit suggestions for improving the effectiveness of the Board and its committees, and to obtain feedback on a range of issues, including Board leadership, culture, corporate purpose and strategy, composition and structure, and risk management. Following the Directors’ submissions of their completed questionnaires, the Lead Director or the third-party consulting firm conducts individual interviews with each of the independent Directors to discuss these topics, among others. The Lead Director then facilitates an evaluation session with the full Board to discuss the feedback received from the questionnaires and from the Director interviews. The evaluation for 2023 was conducted by a third-party consulting firm and concluded that the Board and its committees are operating effectively. Recommendations in recent years to further enhance Board effectiveness, which we addressed, have included continued focus on Board refreshment, strategic and operational oversight, and the development of Verizon’s next generation of leaders.
In addition to annual assessments, the Board evaluates and modifies its oversight of Verizon’s operations on an ongoing basis. During their executive sessions, the independent Directors consider agenda topics that they believe deserve additional focus and raise new topics to be addressed in future meetings.
The Corporate Governance and Policy Committee annually appraises the framework for our Board and committee assessment processes.
Board and committee assessment process | ||||||||||
Feedback solicited | One-on-one discussions | Reporting back | Closed session discussion | Feedback incorporated | ||||||
Questionnaire on a range of topics relating to enhancing Board effectiveness |
Candid, one-on-one discussions between the Lead Director or third-party consulting firm and Directors to elicit additional feedback |
A summary of the assessment results provided to the Board |
Closed session discussion of the assessment results facilitated by the Lead Director |
Policies and practices updated as appropriate to address any suggestions or enhancements per the assessment |
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We provide our Directors with comprehensive orientation and education programs to promote a deep understanding of issues affecting our business and industry, help Directors stay current and knowledgeable about the Company’s business and its competitive and technology landscape, and support Directors in performing their oversight duties.
New Director orientation. When a new Director joins the Board, we conduct an orientation program that includes, among other things, a review of the Company’s purpose, business strategy and operations, technology, financial condition, legal and regulatory framework, and other relevant topics.
Director continuing education. We support current Directors in their ongoing learning by providing continuing education opportunities and programs. These programs may include presentations by thought leaders and industry experts, formal education sessions, meetings with management subject matter experts, participation in industry forums and site visits.
All of our Directors have deep experience and expertise in strategic planning and execution. The Board engages Verizon’s senior leaders in robust discussions about strategic goals and challenges them to execute on the strategic plan, address emerging challenges and disruptions, and promote innovation. In addition to an annual strategy retreat, the agenda for each regularly scheduled Board meeting allocates substantial time for a strategy review. During these reviews, the Board engages with senior management regarding the competitive landscape, operational objectives and challenges and regulatory developments.
13
Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
While senior management has primary responsibility for managing business risks, our Board of Directors is responsible for risk oversight. The Board works closely with senior management to develop a comprehensive view of Verizon’s key short- and long-term business risks. Verizon has a formalized business risk management reporting process that is designed to provide visibility to the Board about critical risks and risk mitigation strategies.
The Board of Directors uses several different levels of review in overseeing the management of risks inherent in the operation of Verizon’s businesses and the implementation of our strategic plan. The Board addresses the primary risks associated with Verizon’s business units and corporate functions in its operations reviews of those units and functions. Further, the Board reviews the risks associated with Verizon’s strategic plan throughout the year.
In addition, each of our Board committees oversees the management of risks that fall within that committee’s areas of responsibility. In performing this function, each Board committee has full access to management and may engage independent advisors. As part of the Board’s risk oversight function, the Board regularly brings in outside advisors and experts to speak to the Board on topics including emerging business risks. In 2023, these topics included geopolitical, technological and economic risks, opportunities and trends.
Enterprise risk management. The Audit Committee oversees the operations of Verizon’s Enterprise Risk Management program, which identifies the primary risks to Verizon’s business and also assesses Verizon’s overall control environment, including controls related to financial reporting, disclosure, compliance and significant financial and business risks. These risks inform Board and Audit Committee discussion topics throughout the year.
Senior management teams from across the business meet with the Audit Committee, on at least a semi-annual basis, to discuss the primary risks associated with their respective business units and functions, and related risk mitigation initiatives. As part of Verizon’s annual enterprise risk assessment process, the Audit Committee also reviews key business risks with the CFO, the Senior Vice President of Internal Audit and the Chief Compliance Officer.
• | The CFO updates the Audit Committee on a quarterly basis on the activities of the Verizon Management Audit Committee, which has management oversight responsibility for the implementation of the Enterprise Risk Management program. |
• | Verizon’s Senior Vice President of Internal Audit, who functionally reports directly to the Audit Committee, facilitates the Committee’s oversight of the Company’s implementation of risk management controls and methodologies to address identified risks, including financial, operational, regulatory and compliance risks. |
• | Verizon’s Chief Compliance Officer, who also functionally reports directly to the Audit Committee, oversees periodic risk assessments of specific compliance risk areas, such as anti-corruption, and reports the findings to the Committee. |
The Audit Committee routinely meets privately with representatives from the independent registered public accounting firm, the Senior Vice President of Internal Audit, and the Chief Legal Officer.
Strategic crisis management. The Company maintains a Strategic Crisis Management Program in order to position our leadership team and the Board to respond to strategic risks and protect Verizon’s core assets in a potential crisis. The Program defines clear roles and responsibilities in dealing with various potential crises and outlines a process to make decisions and implement appropriate actions on a timely basis. Through the Program, the Verizon Strategic Crisis Leadership Team is positioned to assume executive ownership of strategic crisis events through drills and scenario-based training. The Program also includes employee crisis awareness training, which encourages employees across the Company to quickly identify and report circumstances or events that could develop into a strategic crisis, so that our leadership team can take appropriate steps in response. In addition, our Board of Directors maintains a Board Crisis Response Plan, which is structured to be used in connection with any crisis that could have a significant strategic impact on the Company’s brand, reputation, or finances, or legal, political or regulatory position. The Plan provides a framework for appropriate Board oversight and assessment of the response to a crisis that allows the necessary flexibility to address the different types of crises that might arise.
Financial risk and capital allocation. The Finance Committee assists our Board in its oversight of financial risk management. In performing this function, the Finance Committee monitors Verizon’s capital needs and financing plans and oversees the strategy for managing risks related to currency, interest rate, renewable energy and counterparty exposures. The Finance Committee reviews and approves the Company’s derivatives policy and monitors the use of derivatives. The Finance Committee also reviews Verizon’s pension and other postretirement benefit obligations, as well as its insurance and self-insurance programs.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Our Board recognizes that operating responsibly and appropriately managing the environmental and social risks arising from our operations are fundamental to the long-term success of our Company. The Corporate Governance and Policy Committee oversees corporate responsibility, public policy and sustainability. Verizon has a centralized ESG team that is dedicated to enhancing the Company’s sustainability reporting and stakeholder engagement on ESG issues that align with Verizon’s core business strategy. This cross-functional team focuses on strategic areas including governance, reporting, human rights and environmental sustainability and also oversees Verizon’s efforts to deliver on our ESG commitments. The Senior Vice President, Deputy General Counsel and Corporate Secretary regularly provides the Corporate Governance and Policy Committee with updates on the Company’s ESG priorities, commitments, stakeholder engagement and reporting. In addition, the ESG, Enterprise Risk Management and Accounting Policy teams together comprise our ESG Center of Excellence, which is implementing an expanded internal control framework for ESG information to facilitate our compliance with climate-related laws and regulations.
Environmental sustainability and climate. To address climate-related risks, Verizon has a long-term goal to achieve net-zero emissions in our operations by 2035. We have set interim Science-based Target Initiative-approved targets to reduce operational and value chain emissions, as well as renewable energy targets. We are upgrading and hardening our infrastructure to be prepared for a changing climate, improving energy efficiency across our networks and facilities, making substantial investments in renewable energy, and developing solutions to help our customers to reduce their carbon footprints. Several of our Directors have experience with climate-related issues, including renewable energy, network resilience, innovative technological solutions and emissions management.
Each committee of the Board oversees the management of the specific risks related to our environmental sustainability strategy and the transition to a low-carbon economy that fall under the committee’s area of responsibility:
• | Audit Committee. Environmental and climate-related risks discussed during annual business risk reviews with the Audit Committee include operational and financial risks relating to energy management and our renewable energy and carbon neutral commitments, maintaining network reliability during catastrophic and weather-related events, and the impacts of pending or possible laws or regulations that seek to mitigate climate change. |
• | Corporate Governance and Policy Committee. The Corporate Governance and Policy Committee oversees Verizon’s strategy for managing climate-related risks and monitors the Company’s progress on meeting climate-related goals. The Senior Vice President, Deputy General Counsel and Corporate Secretary regularly updates the Committee on the activities of Verizon’s Executive Climate Oversight Committee, a cross-functional management committee that has management oversight responsibility for Verizon’s climate-related strategy and initiatives. |
• | Finance Committee. The Finance Committee oversees the strategy for managing risks related to Verizon’s renewable energy exposure through renewable energy purchase agreements, as well as the Company’s green financing program. |
• | Human Resources Committee. To incentivize management to achieve the Company’s climate-related goals, the Human Resources Committee has included a carbon intensity reduction metric as one of the performance measures in the Short-Term Plan since 2014. |
Data privacy and cybersecurity. Protecting the privacy of our customers’ information and the security of our systems and networks has long been and will continue to be a priority at Verizon. The Board is committed to maintaining strong and meaningful privacy and security protections for our customers’ information. The Audit Committee has primary responsibility for overseeing Verizon’s risk management programs relating to data protection and privacy and cybersecurity. The Audit Committee also monitors Verizon’s compliance in the areas of data protection and privacy.
• | Data privacy. Verizon has technical, administrative and physical safeguards in place to help protect against unauthorized access to, use or disclosure of customer information and data we collect and store. Verizon has a dedicated Chief Privacy Officer whose team advises the business on privacy risks and assesses the effectiveness of privacy controls. The Chief Privacy Officer at least annually briefs the Audit Committee on data privacy risks and mitigating actions. |
• | Cybersecurity. To more effectively address the cybersecurity threats posed today, Verizon has a dedicated Chief Information Security Officer (CISO) whose team is responsible for leading enterprise-wide information security strategy, policy, standards, architecture and processes. Verizon’s comprehensive information security program includes, among other aspects, cyber defense including incident response and resiliency planning and testing, product and platform security, cyber architecture and engineering, identity and access management, and risk assessment and management including third-party oversight. The CISO leads an annual review and discussion with the full Board dedicated to Verizon’s cybersecurity risks, threats and protections. The CISO provides a mid-year update to this annual review to the Audit Committee and, as warranted, additional updates throughout the year. The Audit Committee also receives a report from senior management on Verizon’s cybersecurity posture and related matters at each of its other meetings during the year at which the CISO is not present. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Responsible business. Verizon’s Responsible Business Council, chaired by the CEO and composed of members of the senior leadership team, oversees the integration of responsible practices as a core operating principle. At least annually, the Chief Corporate Social Responsibility Officer reports to the Board on the Council’s activities and Verizon’s community and social impact initiatives.
Current policy and technology issues impacting corporate reputation. Companies in our industry and beyond are facing challenges that have impacted their reputations and brought adverse attention and action by consumers, regulators and shareholders. The Corporate Governance and Policy Committee has primary responsibility for overseeing the Company’s handling of risks related to Verizon’s position and engagement on important public policy and technology issues, as well as individual events and incidents that may affect the Company’s business and reputation. At least annually, Verizon’s Chief Legal Officer updates the Committee on the current policy and technology issues facing the Company that may generate publicity and impact corporate reputation. Periodically throughout the year, the Committee reviews and discusses with management the most pressing known reputational issues and the Company’s position on each issue, as well as the processes in place to anticipate potential developments in each of the identified areas and to quickly respond to any such developments in a timely manner. Outside the regular meeting cycle, management informs the Board of current developments that could pose reputational risks to the industry or the Company.
Political activities and lobbying. Verizon adheres to the highest ethical standards when engaging in any political activity. The Corporate Governance and Policy Committee oversees our political activity, including lobbying, and receives a comprehensive briefing from the Senior Vice President of Public Policy and Government Affairs on these activities at least annually. Moreover, Verizon’s political activity is subject to robust internal controls. The Code of Conduct requires that all lobbying activities on behalf of Verizon be authorized by public policy or legal personnel. Corporate policy and training materials provide guidance to employees regarding legal requirements in connection with lobbying activities.
Verizon understands that transparency regarding our political activity is critical to maintaining the trust of our stakeholders. We publish a Political Engagement Report on our corporate website that is updated twice a year. This report describes our current policy priorities, provides information about lobbying activities and our Public Policy organization’s significant memberships in trade associations and issue advocacy organizations, and lists all of our PAC contributions, corporate political contributions, support for ballot initiatives and independent expenditures for the period covered. Verizon supports trade associations and issue advocacy organizations for a number of reasons, including to reflect our interest in the community, acquire valuable industry and market expertise and support our strategic policy positions, business goals and interests. We recognize that we may not always agree with every position of each organization or its members and that these groups often have a diversity of members, interests and viewpoints that may not always reflect Verizon’s beliefs or priorities. In order to mitigate reputational risks associated with our engagement with these organizations, we regularly review our participation to confirm ongoing alignment with our corporate priorities and goals. When we disagree with a position of an organization we support, we communicate our concerns through the senior executives who interact with these organizations.
Human rights. As expressed in our Human Rights Statement, Verizon is committed to operating with respect for internationally recognized human rights. We have a dedicated Business and Human Rights Program that works to embed human rights considerations into responsible business decision-making processes across the Company. The Corporate Governance and Policy Committee oversees our human rights work.
Anti-corruption. Verizon has a robust anti-corruption program to comply with applicable anti-corruption rules, including the Foreign Corrupt Practices Act and the U.K. Bribery Act. As part of this program, the Audit Committee receives annual reports summarizing the Company’s continued compliance with applicable anti-corruption rules on a Company-wide basis and within the various business units and corporate functions. Every two years, we review and assess our anti-corruption program with the goal of finding areas for improvement. This process is done under the direction of our Chief Compliance Officer, who reports the findings to the Audit Committee.
The Human Resources Committee is charged with oversight of our strategies, initiatives and programs related to human capital management, including with respect to employee diversity, equity and inclusion, talent acquisition, retention and development, employee engagement, pay equity and corporate culture.
Culture and employee engagement. Our Board views our employees as one of Verizon’s most critical assets and regularly receives briefings from the CEO and the Chief Human Resources Officer on initiatives to strengthen our company culture and encourage employee engagement. The CEO and the Chief Human Resources Officer review with the Board the results of the “Pulse” surveys completed by employees across the Company. Periodically, our Directors attend employee town halls and participate in leadership forums with employees.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Diversity, equity and inclusion. Verizon is committed to creating a collaborative, inclusive, equitable and diverse environment – within Verizon, with our customers, and among our business partners and suppliers. The Board views this commitment as a business imperative and a competitive advantage. To promote diversity in our workforce and encourage the contribution of diverse business partners to our success, the Human Resources Committee has included diversity targets as performance measures in the Short-Term Plan for over 20 years. The Chief Human Resources Officer reviews diversity representation and initiatives with the Committee at least annually. Additionally, the Corporate Governance and Policy Committee regularly reviews and discusses Board diversity matters. The Finance Committee also receives regular updates from our Senior Vice President and Treasurer about the Company’s efforts to foster diversity, equity and inclusion in the capital markets through our financing activities.
Succession planning and talent development. Our Board recognizes that one of its most important duties is to promote continuity in Verizon’s senior leadership by overseeing the development of executive talent and planning for the efficient succession of the CEO. Our Board has delegated primary oversight responsibility for succession planning to the Human Resources Committee, which oversees assignments to key leadership positions. The Human Resources Committee reports on its activities to the full Board, which addresses succession planning during executive sessions that typically occur in connection with each regularly scheduled meeting.
To align the succession planning and management development process with Verizon’s strategic objectives, the Board and the Human Resources Committee regularly consult with the CEO on Verizon’s organizational needs and competitive challenges, the potential of key managers, and plans for future developments and emergency situations. As part of this process, the Board and the Human Resources Committee also seek input from the Chief Human Resources Officer, as well as advice on related compensation issues from the Human Resources Committee’s independent compensation consultant.
Our Board generally conducts an in-depth review of senior leader development and succession planning at least twice a year. Led by the CEO and the Chief Human Resources Officer, this review addresses Verizon’s management development initiatives, assesses senior management resources, and identifies individuals for consideration as potential future senior executives.
Our goal is to develop well-rounded, experienced and diverse senior leaders. High-potential executives are challenged regularly with additional responsibilities, new positions or promotions to expose them to our various operations. These individuals are often positioned to interact more frequently with the Board, both in full Board meetings and in less formal settings and small groups, so the Directors can get to know and assess them.
Employee health and safety. Verizon is committed to maintaining a safe workplace and environmentally responsible work practices, and we expect our suppliers to share that commitment. At least annually, the Board receives a briefing on health and safety matters, including incidents involving employees and suppliers and actions that management is taking to limit these risks.
Compensation risk. The Human Resources Committee considers the impact of our executive compensation program and the incentives created by compensation awards on Verizon’s overall risk profile. It also oversees management’s annual assessment of compensation risk arising from Verizon’s compensation policies and practices. This annual assessment is conducted by members of management including the Senior Vice President of Internal Audit and the Senior Vice President, Deputy General Counsel and Corporate Secretary. The assessment includes a review of the features and characteristics of Verizon’s compensation policies and programs, the performance metrics under the Short- and Long-Term Incentive Plans and the process for calculating and approving adjustments that are part of the plan, as well as the approval processes for compensation programs and related payouts. The assessment also reviews governance oversight at the Committee and Board level, Code of Conduct provisions and mandatory training programs that reinforce policies that mitigate risk, and performance metrics and measurement periods that are aligned with Verizon’s business strategy.
Based on management’s review, Verizon has concluded that our compensation policies and procedures are not reasonably likely to have a material adverse effect on Verizon because they are appropriately structured and discourage employees from taking excessive risks.
Business conduct and ethics. We are committed to operating with the highest level of integrity, responsibility and accountability. To that end, we have adopted a Code of Conduct that applies to all employees, including the CEO, the CFO and the Controller. The Code of Conduct describes each employee’s responsibility to conduct business with the highest ethical standards and provides guidance about preventing, reporting and remediating potential compliance violations in key areas. Verizon thoroughly investigates all claims of misconduct. Various types of cases are reported to the Chief Compliance Officer, who discusses the most serious Code of Conduct violations with the Audit Committee at least annually.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Directors are expected to act in the spirit of the Code of Conduct, and to comply with the specific ethical provisions of the Corporate Governance Guidelines. Our Board is strongly predisposed not to waive any of these business conduct and ethics provisions for senior executives or Directors. In the event of an amendment or a waiver, we will promptly disclose the Board’s action on the Corporate Governance section of our website at www.verizon.com/about/investors/corporate-governance.
Related person transactions. The Board has adopted the Related Person Transaction Policy that is included in the Corporate Governance Guidelines. The Corporate Governance and Policy Committee reviews transactions between Verizon and any of our Directors or executive officers or members of their immediate families to determine if any participants have a material interest in the transaction. If the Committee determines that a material interest exists, based on the facts and circumstances of each case, the Committee may approve, disapprove, ratify or cancel the transaction or recommend another course of action. Any Committee members who are involved in a transaction under review do not participate in the Committee’s deliberations. During 2023, there were no related person transactions required to be disclosed in this proxy statement.
We believe that a robust shareholder outreach and engagement program is an essential component of maintaining our strong corporate governance practices. Ongoing communication with our investors helps our Board and senior management gather useful feedback on a wide range of topics. In our discussions with investors, we seek their input on a variety of corporate governance, compensation and ESG topics that may impact our business or reputation. We strive for a collaborative approach with investors to solicit and understand a variety of perspectives. These engagements include the participation of our independent Lead Director, Clarence Otis, Jr., or other Directors, when requested and appropriate. Shareholder feedback is regularly summarized and shared with our Board.
In 2023, topics covered in engagement included:
Environmental
• Climate change • Network reliability and resilience • Biodiversity
|
Social
• Artificial intelligence (AI) • Cybersecurity • Data privacy • Digital inclusion • Human capital, including diversity, equity and inclusion • Labor management • Supply chain
|
Governance
• Board diversity and skills • Business ethics • Executive compensation • Human rights • Political engagement • Risk management |
Disclosure
• ESG ratings • Human capital metrics • Proposed SEC rules • SASB industry standard • TCFD
|
Our Lead Director, Clarenc e Otis, Jr., discusses corporate purpose, decisions about when to speak on social issues, Board oversight of human capital management, and Board composition and refreshment in a video on the Corporate Governance section of our website at www.verizon.com/about/investors/corporate-governance.
Verizon’s dedicated ESG team focuses on stakeholder engagement and decision-useful reporting in strategic areas including governance, human rights, environmental sustainability, and digital trust and safety. Our ESG team also oversees Verizon’s efforts to deliver on our ESG commitments. Our ESG reporting is aligned with the SASB Standard for the telecommunications industry, the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), the Global Reporting Initiative and United Nations Global Compact. We strive to make it easy for shareholders to learn about our positions and progress on the issues that matter to them. To that end, we have created an ESG Resources Hub on our Investor Relations website at www.verizon.com/about/investors/reporting that houses all of our ESG reporting and policies.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
You can find information about Verizon’s Directors, Board committees and a video from our Lead Director on the Corporate Governance section of our website at www.verizon.com/about/investors/corporate-governance. You can also access Verizon’s Corporate Governance Guidelines, Code of Conduct and other corporate governance materials, including Verizon’s certificate of incorporation, bylaws, committee charters and policies at that site. You can request copies of these materials from the Assistant Corporate Secretary at the address provided under “Contacting us.”
In addition, you can access all of Verizon’s ESG reporting, including our ESG Reports, TCFD Reports, Transparency Reports, Political Engagement Reports and EEO-1 Report, as well as key company policies, through our ESG Resources Hub at www.verizon.com/about/investors/reporting.
The information contained on any website referred to in this proxy statement is provided for reference only and is not incorporated herein by reference.
Any shareholder or interested party may communicate directly with our Board, any committee of our Board, any individual Director (including the Lead Director and the committee chairs), or the non-employee Directors as a group, by writing to:
Verizon Communications Inc.
Board of Directors
(or committee name, individual Director, Lead
Director, committee chair or non-employee
Directors as a group, as appropriate)
1095 Avenue of the Americas
New York, New York 10036
Verizon’s Corporate Secretary reviews all correspondence addressed to our Directors and periodically provides the Board with copies of all communications concerning the functions of our Board or its committees, or that otherwise require Board attention. Typically, the Corporate Secretary will not forward communications that are of a personal nature or are unrelated to the duties and responsibilities of our Board, including business solicitations or advertisements, mass mailings, job-related inquiries, or other unsuitable communications. All communications involving substantive accounting or auditing matters are forwarded to the Chair of the Audit Committee.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The Human Resources Committee, in consultation with its independent compensation consultant, reviews and recommends non-employee Director compensation. In 2023, each non-employee Director of Verizon received a grant of Verizon share equivalents valued at $210,000 on the grant date and an annual cash payment of $125,000. The Chairs of the Corporate Governance and Policy Committee and the Finance Committee each received an additional annual cash payment of $20,000, and the Chairs of the Audit Committee and the Human Resources Committee each received an additional annual cash payment of $30,000. The Lead Director received an additional annual cash payment of $75,000. No additional fees were paid for meeting attendance.
All share equivalents that non-employee Directors receive are automatically credited to the Director’s deferred compensation account under the Verizon Executive Deferral Plan, which is referred to as the Deferral Plan, and invested in a hypothetical Verizon stock fund. Amounts in a Director’s deferred compensation account are paid in a cash lump sum in the year following the year the Director leaves our Board.
Non-employee Directors may choose to defer all or part of their annual cash payments under the Deferral Plan. They may elect to invest these amounts in the hypothetical investment options available to participants in Verizon’s Management Savings Plan or in a hypothetical cash account that earns a return rate equal to the long-term, high-grade corporate bond yield average as published by Moody’s Investor Services.
The non-employee Directors are eligible to participate in the Verizon Foundation Matching Gifts Program. Under this program, which is open to all Verizon employees, the Foundation matches up to $5,000 per year of charitable contributions to accredited colleges and universities, $1,000 per year of charitable contributions to any non-profit with 501(c)(3) status, and $1,000 per year of charitable donations to designated disaster relief campaigns.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Name (a) | Fees earned or paid in cash1 ($) (b) | Stock awards2 ($) (c) | Option awards ($) (d) | Non-equity incentive plan compensation ($) (e) | Change in pension value and nonqualified deferred compensation earnings ($) (f) | All other compensation ($) (g) | Total ($) (h) | |||||||
Shellye Archambeau* | 145,000 | 210,000 | 0 | 0 | 0 | 0 | 355,000 | |||||||
Roxanne Austin | 125,000 | 210,000 | 0 | 0 | 0 | 0 | 335,000 | |||||||
Mark Bertolini* | 145,000 | 210,000 | 0 | 0 | 0 | 0 | 355,000 | |||||||
Vittorio Colao | 125,000 | 210,000 | 0 | 0 | 0 | 0 | 335,000 | |||||||
Melanie Healey | 125,000 | 210,000 | 0 | 0 | 0 | 0 | 335,000 | |||||||
Laxman Narasimhan | 125,000 | 210,000 | 0 | 0 | 0 | 0 | 335,000 | |||||||
Clarence Otis, Jr.** | 200,000 | 210,000 | 0 | 0 | 0 | 0 | 410,000 | |||||||
Daniel Schulman* | 155,000 | 210,000 | 0 | 0 | 0 | 0 | 365,000 | |||||||
Rodney Slater | 125,000 | 210,000 | 0 | 0 | 0 | 0 | 335,000 | |||||||
Carol Tomé | 125,000 | 210,000 | 0 | 0 | 0 | 0 | 335,000 | |||||||
Gregory Weaver* | 155,000 | 210,000 | 0 | 0 | 0 | 0 | 365,000 |
* | Denotes a chair of a standing committee during 2023. |
** | Mr. Otis served as Lead Director during 2023. |
1 | This column includes all fees earned in 2023, whether the fee was paid in 2023 or deferred. |
2 | For each non-employee Director, this column reflects the grant date fair value of the non-employee Director’s 2023 annual stock award, computed in accordance with FASB ASC Topic 718. The following reflects the aggregate number of share equivalents held as of December 31, 2023 by each person who served as a non-employee Director during 2023: Ms. Archambeau, 50,018; Ms. Austin, 17,657; Mr. Bertolini, 43,827; Mr. Colao, 6,631; Ms. Healey, 62,627; Mr. Narasimhan, 14,745; Mr. Otis, 117,902; Mr. Schulman, 26,204; Mr. Slater, 77,466; Ms. Tomé, 10,673; and Mr. Weaver, 40,989. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Shareholders have strongly supported Verizon’s executive compensation program since our first annual advisory vote on the matter in 2009. We are asking you to vote in favor of the following non-binding resolution:
“Resolved, that the shareholders approve, on an advisory basis, the compensation of the named executive officers, as disclosed in Verizon’s proxy statement for the 2024 Annual Meeting of Shareholders pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including the Compensation Discussion and Analysis, the Compensation Tables, and the related narrative discussion.”
The structure of our executive compensation program for 2023 is similar to prior years, with updates to address changes in our strategic emphasis. Our Board recommends a vote FOR this resolution because the Board believes our program effectively:
• | Encourages strong short-term and long-term performance; |
• | Aligns the executives’ long-term interests with those of our shareholders; and |
• | Retains high-performing executives. |
In the Compensation Discussion and Analysis and Compensation Tables beginning on page 23, we provide a detailed description of our executive compensation program, including our philosophy, the elements of our program, and the compensation of our named executive officers. We encourage you to read these sections before deciding how to vote on this proposal.
This advisory resolution, commonly known as a “say-on-pay” resolution, is not binding on our Board of Directors. Nevertheless, the Board and the Human Resources Committee value shareholder feedback received through this annual say-on-pay vote and our direct investor outreach program. The voting results and direct shareholder input are carefully reviewed and considered and are an important part of the process for evaluating our executive compensation program.
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The Board of Directors recommends that you vote FOR this proposal. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
2023 Named executive officers |
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Hans Chairman and Chief Executive Officer
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Anthony Skiadas* Executive Vice President and Chief Financial Officer
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Sowmyanarayan Sampath** Executive Vice President and Group CEO – Verizon Consumer
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Kyle Executive Vice President and Group CEO – Verizon Business
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Craig Executive Vice President and President – Verizon Global Services
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Matthew Former Executive Vice President and Chief Financial Officer
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* | Mr. Skiadas succeeded Mr. Ellis as Executive Vice President and Chief Financial Officer effective April 29, 2023. Prior to that appointment, Mr. Skiadas served as Verizon’s Senior Vice President and Controller. Mr. Ellis separated from Verizon on April 29, 2023. |
** | Mr. Sampath served as Executive Vice President and Group CEO – Verizon Business until March 2, 2023, and Mr. Malady succeeded Mr. Sampath in that role on that date. Prior to that appointment, Mr. Malady served as Executive Vice President and President – Global Networks and Technology. |
Human Resources Committee. The Human Resources Committee of the Board of Directors oversees the design and implementation of the compensation program for our named executive officers, as well as Verizon’s management succession planning, talent development and human capital management initiatives, including with respect to employee diversity, equity and inclusion and pay equity. The CEO’s compensation is determined by the independent members of the Board after receiving the Committee’s recommendation. References to the Committee in this Compensation Discussion and Analysis with respect to the CEO’s compensation reflect that process.
Management. The Committee consults with the Chief Human Resources Officer about the design, administration and operation of the compensation program. The Committee has delegated administrative responsibility for implementing its decisions on compensation and benefits matters to the Chief Human Resources Officer, who reports to the Committee on the actions taken under this delegation.
The Committee seeks the CEO’s views on whether the existing compensation policies and practices continue to support Verizon’s business and performance objectives, utilize appropriate performance targets, and appropriately reward the contributions of the other named executive officers. While the Committee values the CEO’s insight, ultimately the Committee makes an independent determination on all matters related to the compensation of the named executive officers.
Independent compensation consultant. The Committee has the sole authority to retain and terminate a compensation consultant and to approve all terms of the engagement, including fees. The Committee retained Semler Brossy Consulting Group, LLC as its compensation consultant (Semler Brossy). Semler Brossy advises the Committee on all matters related to the compensation of our named executive officers and our non-employee Directors. Semler Brossy’s advisory services include providing current benchmarking data for our peer group and other relevant market data in our industry and helping the Committee interpret this data, as well as data provided by the Company. Semler Brossy participates in Committee meetings and confers regularly with the Committee in executive session at those meetings.
Committee policy prohibits Semler Brossy from doing any work for the Company during its engagement, and Semler Brossy did not perform work for the Company in 2023. The Committee made assessments of Semler Brossy under SEC rules and NYSE and Nasdaq listing standards and concluded that Semler Brossy was independent, and that its work in 2023 for the Committee did not raise any conflicts of interest.
Our Board, the Human Resources Committee and our management team value shareholder perspectives on our executive compensation program. Management and Directors engage with our institutional shareholders in meetings and calls throughout the year. Topics of discussion typically include the Committee’s choice of performance measures for awards issued under our Short- and Long-Term Incentive Plans, the relationship between the performance measures and
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
our long-term strategy, the payout terms of equity awards, compensation recoupment policies and shareholder proposals, and our long-standing practice of including quantitative ESG performance measures in our Short-Term Plan. In addition to this direct feedback, as part of the Committee’s annual review of the executive compensation program, the Committee considers the outcome of Verizon’s annual shareholder advisory vote on executive compensation – the “say-on-pay.” At our Annual Meeting in May 2023, the compensation of our named executive officers was approved by approximately 91% of votes cast. Based on the perspective obtained from discussions with our long-term shareholders, the results of our 2023 say-on-pay vote, and the history of strong shareholder support in prior say-on-pay votes, the Committee believes our shareholders continue to strongly support Verizon’s executive compensation program.
Our compensation program reflects our commitment to industry-leading standards for compensation design and governance. The Human Resources Committee regularly reviews best practices in executive compensation and governance and revises our policies and practices when appropriate. The following table highlights some features of our executive compensation program that demonstrate the rigor of our policies.
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What we do |
More information | |
Pay for performance | Approximately 90% of named executive officers’ total compensation opportunity is variable, incentive-based pay. | 26 | |
Focus on performance: Exclude buybacks from EPS results | Our adjusted earnings per share (EPS) metric under our Long-Term Incentive Plan (Long-Term Plan) excludes the benefit of any repurchases of Verizon’s common stock under a share buyback program. | 32 | |
Robust stock ownership guidelines | We have stock ownership guidelines for the CEO of 7x base salary; for other named executive officers of 4x base salary; and for Directors of 5x the cash component of the annual Board retainer. | 37 | |
Clawback policies | Our clawback policies give us the right to cancel or “claw back” incentive compensation from any senior executive who has engaged in misconduct that results in (i) significant reputational or financial harm to Verizon or (ii) a material financial restatement. In addition, the Company adopted an additional clawback policy in accordance with final SEC rules and NYSE and Nasdaq listing rules that provides for the mandatory recovery of erroneously awarded “incentive-based compensation” from current and former executive officers in the event that Verizon is required to prepare an accounting restatement. | 38 | |
Anti-hedging policy | Our anti-hedging policy prohibits Directors and executives who receive equity-based incentive awards from entering into transactions designed to hedge or offset any decrease in the market value of Verizon stock that they own. | 37 | |
Double-trigger change in control | In the event of a change in control, our Long-Term Plan requires an involuntary termination without cause for any accelerated vesting of awards. | 37 | |
ESG metric | For over 20 years, our short-term incentive program has included an ESG metric. | 29 | |
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What we don’t do | ||
Tax gross-ups | We do not provide tax gross-ups to our executive officers or Directors. | 36 | |
Dividends on unearned performance awards | We do not pay dividends on unearned Performance Stock Units (PSUs) or Restricted Stock Units (RSUs). | 31 | |
Employment contracts | None of our named executive officers has an employment contract. | 37 | |
Guaranteed benefits | Over 15 years ago, we froze our defined benefit pension and supplemental executive retirement benefits. | 36 |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The Committee evaluates whether the compensation opportunities for our executives are appropriate and competitive by comparing each named executive officer’s total compensation opportunity – which represents the sum of the executive’s base salary and target award amounts under the Short-Term Plan and the Long-Term Plan – to the total compensation opportunities for executives in comparable positions at peer companies, referencing the 50th percentile when making this comparison. A named executive officer’s total compensation opportunity may be higher or lower depending upon the executive’s tenure and overall level of responsibility.
The peer groups utilized for compensation benchmarking are reviewed each year. For 2023 compensation decisions, the Committee utilized a peer group that consisted of the companies in the Dow Jones Industrial (Dow) Average (other than Verizon) with at least $50 billion in annual revenue, plus Verizon’s four largest industry competitors (AT&T, Charter Communications, Comcast and T-Mobile US) and four large market-capitalization technology companies (Alphabet, Amazon, Meta Platforms and Netflix) that were not included in the Dow at the time of the 2023 compensation decisions, whose applications rely heavily on our network and technology. This is the same peer group selection criteria utilized for 2022 compensation decisions.
Below are the companies included in the Company’s peer group for 2023 compensation benchmarking purposes.
Alphabet Amazon American Express Apple AT&T Boeing Caterpillar Charter Communications Chevron Cisco |
Comcast Dow Inc. Home Depot IBM Intel Johnson & Johnson JPMorgan Chase Merck Meta Platforms |
Microsoft Netflix Nike Procter & Gamble T-Mobile US UnitedHealth Group Walgreens Boots Alliance Walmart Walt Disney |
Compensation objectives
Verizon’s executive compensation program supports the creation of shareholder value by pursuing four key objectives:
• | Attract and retain high-performing executives with the leadership abilities and experience necessary to drive our customer-focused, technology-enabled strategy, within an enterprise of our scale, breadth and complexity; | |
• | Pay for superior results and sustainable growth by rewarding the achievement of challenging short- and long-term performance goals designed to build shareholder value; | |
• | Drive performance and create shareholder value by emphasizing variable, at-risk compensation with an appropriate balance of short-term and long-term objectives that align executive and shareholder interests; and | |
• | Manage risk through oversight and compensation design features, policies and practices that strike an appropriate balance between risk and reward. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The Committee determines the appropriate balance between fixed and variable pay elements, short- and long-term pay elements, and cash and equity-based pay elements when setting total compensation opportunities at competitive levels.
Pay element | Characteristics | Purpose | |
Base salary | Annual fixed cash compensation | Attract and retain high-performing and experienced executives | |
Short-term incentive opportunity |
Annual variable cash compensation based on the achievement of predetermined annual performance measures | Motivate executives to achieve short-term performance goals that will establish the foundation for future growth | |
Long-term incentive
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Long-term variable equity awards granted annually as a combination of performance-based stock units and time-based restricted stock units | Align executives’ interests with those of shareholders, encourage efforts to grow long-term value, and retain executives | |
The Committee believes that a substantial majority of each named executive officer’s total compensation opportunity should be variable and at risk in order to emphasize a performance-based culture. Moreover, since the annual Long-Term Plan awards feature three-year award cycles, with awards consisting of PSUs subject to both performance-based and time-based vesting requirements and RSUs subject to time-based vesting requirements, we reward sustained performance and also encourage high-performing executives to remain with Verizon.
The following chart illustrates the approximate allocation of the named executive officers’ 2023 total compensation opportunity between variable, performance-based elements and fixed pay. The actual percentages vary by individual.
In establishing the mix of incentive pay for the named executive officers, the Committee balances the importance of meeting Verizon’s short-term business goals with the need to create shareholder value over the longer term. The Committee also considered market data with respect to the mix of annual cash and long-term equity components for similarly situated executives among the peer group. Based on its review, the Committee established long-term target compensation opportunities at levels more than three times the annual base salary and short-term incentive target compensation opportunities of the named executive officers.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The Committee takes a holistic approach to establishing performance targets under our incentive plans and ensuring that they are aligned with Verizon’s short- and long-term strategic goals. In establishing performance targets, the Committee recognizes the importance of achieving an appropriate balance between rewarding executives for strong performance over both the short- and long-term and establishing realistic goals that continue to motivate and retain executives. As a result, we believe that our Short-Term and Long-Term Plans provide for measurable, rigorous performance targets that are attainable, but challenge executives to drive business results that generate shareholder value.
In setting the performance targets, the Committee considered the following factors:
• | Verizon’s short- and long-term strategy; | |
• | Economic, industry and competitive environments; | |
• | The creation of shareholder value; | |
• | The achievement level against performance targets in the prior year; | |
• | Financial analysts’ consensus estimates for the performance measures over future performance cycles; | |
• | The correlation among the performance measures and considerations of how Verizon’s operational performance will affect each measure differently; and | |
• | With regard to the ESG metrics in the Short-Term Plan, Verizon’s strategic plans to reduce its environmental impact and promote diversity in its workforce and among its business partners. |
To determine an executive’s base salary, the Committee, with assistance from Semler Brossy, considers the pay practices of the peer group for comparable positions; the executive’s experience, tenure, scope of responsibility and performance; internal pay alignment; continuity planning and management development considerations; and for newly-hired executives, the Committee also considers the compensation required to attract the executive to the Company. There is no specific weighting applied to any of these factors in setting annual salaries, and the process ultimately relies on the subjective exercise of the Committee’s judgment.
The Committee took these considerations into account in making the following base salary determinations for Mr. Sampath, Mr. Malady, Mr. Skiadas, and Mr. Silliman. In March 2023, when Mr. Sampath was appointed Executive Vice President and Group CEO – Verizon Consumer, and Mr. Malady was appointed Executive Vice President and Group CEO – Verizon Business, the Committee approved a new base salary for Mr. Sampath of $1,050,000 (an increase of 23.53% from his prior base salary) and a new base salary for Mr. Malady of $1,000,000 (an increase of 11.11% from his prior base salary), which reflect the scope and breadth of their new positions. The Committee approved a 2023 base salary of $900,000 for Mr. Silliman in connection with his role as Executive Vice President and President – Verizon Global Services (an increase of 5.88% from his prior base salary). In addition, the Committee approved a new base salary for Mr. Skiadas of $800,000 (an increase of 28% from his prior base salary in his role as Senior Vice President and Controller) effective on the date Mr. Skiadas assumed the position of Executive Vice President and Chief Financial Officer in April 2023. Messrs. Vestberg and Ellis did not receive a base salary increase in 2023.
The Verizon Short-Term Plan motivates executives to achieve challenging short-term performance targets in order to provide the foundation for future growth. Each year, the Committee establishes the potential value of the awards under the Short-Term Plan, as well as the performance targets required to achieve these awards.
For the 2023 Short-Term Plan, the Committee established a single set of performance metrics at the Verizon corporate level, based on Verizon’s consolidated results, that apply to all executives, consistent with the 2022 Short-Term Plan. The Committee also maintained the same three financial performance measures – service and other revenue, cash flow from operations and adjusted operating income – as well as the diversity and sustainability metrics from the 2022 Short-Term Plan. The Committee evolved the plan design for 2023 by eliminating the qualitative operating unit and overall leading indicators that were in place for 2022, after taking into consideration the formation of the Verizon Global Services organization in addition to Verizon’s three operating units – Consumer, Business and Global Network and Technology (GN&T) – and the desire to focus all employees around a single set of shared strategic goals, further accelerate efficiency and growth, and emphasize a unified Verizon.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The Committee set the values of the 2023 Short-Term Plan award opportunities as a percentage of an executive’s base salary based on both the scope of the executive’s responsibilities and the competitive pay practices of the peer group used for benchmarking our executives’ total compensation opportunity. The Short-Term Plan award opportunities at the threshold, target and maximum levels for each of the named executive officers are shown in the Grants of Plan-based Awards table on page 42.
For the named executive officers, other than Mr. Skiadas, target award opportunities, expressed as a percentage of base salary, did not change for 2023. However, the dollar value of the 2023 target award opportunity for Messrs. Sampath, Malady and Silliman increased from 2022 as a result of the base salary increases described above. Messrs. Vestberg and Ellis did not receive a salary increase in 2023, so the dollar value of their respective 2023 target award opportunities was the same as it was in 2022. When Mr. Skiadas was promoted to Executive Vice President and Chief Financial Officer in April 2023, his target award opportunity was increased from 90% to 150% of his base salary on a prorated basis. The dollar value in the 2023 Short-Term Plan Target Award Opportunity table below reflects this increase.
The following table shows the 2023 Short-Term Plan target award opportunity for each of the named executive officers.
Named executive officer | As a percentage of base salary | As a dollar value | |
Mr. Vestberg | 250% | $ | 3,750,000 |
Mr. Skiadas* | 150% | $ | 987,500 |
Mr. Sampath | 150% | $ | 1,575,000 |
Mr. Malady | 150% | $ | 1,500,000 |
Mr. Silliman | 150% | $ | 1,350,000 |
Mr. Ellis** | 150% | $ | 1,425,000 |
* | Mr. Skiadas’s target award opportunity was 90% of his base salary prior to May 2023. The dollar value shown here reflects Mr. Skiadas’s total target award opportunity for 2023 after giving effect to the prorated increase to his target award percentage in April 2023. |
** | In connection with Mr. Ellis’s involuntary separation from Verizon in April 2023, he was eligible for a prorated 2023 Short-Term Plan award pursuant to the terms of the Verizon Senior Manager Severance Plan based on the Company’s attainment of the 2023 Short-Term Plan annual performance measures. The amount in this table represents Mr. Ellis’s full year 2023 target award opportunity. |
In February 2023, the Committee established the performance measures and targets for the 2023 Short-Term Plan. The Committee established financial, operational and ESG performance measures and targets at the Verizon corporate level, based on Verizon’s consolidated results. For each performance measure, the Committee set a target that challenges executives to drive business results that generate shareholder value. Verizon’s performance with respect to these applicable measures determines the amount of the short-term incentive awards earned by the named executive officers.
The 2023 performance measures, along with the weighting ascribed to each, are shown on the following page as a percentage of the total Short-Term Plan award opportunity at target level performance. The Committee believes that these performance measures are appropriate to motivate Verizon’s executives to achieve outstanding short-term results and, at the same time, help establish the foundation for long-term value for shareholders.
The 2023 measures and related targets approved by the Committee are described in detail on the following page.
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Why these performance measures?
The Committee selected service and other revenue, adjusted operating income, and cash flow from operations to reflect Verizon’s strategic goals of encouraging profitable operations, growth and delivering best-in-class network experiences in a cost efficient manner. Consistent with prior years, the Committee also selected diversity and sustainability metrics to reflect Verizon’s commitments to promoting diversity among our employees and our business partners and reducing the environmental impact of our operations.
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Service and other revenue | Target range: $109.4 billion to $111.3 billion | |
Service and other revenue is a measure that reflects the extent to which we have been successful in attracting and retaining customers, penetrating key markets with our products and services and creating high-quality growth. The Committee views this measure as an important indicator of Verizon’s growth and success in realizing its strategic initiatives. | ||
Adjusted operating income | Target range: $30.6 billion to $32.1 billion | |
Adjusted operating income is a measure that reflects operating profitability because it indicates how much profit we generate after subtracting operating expenses, including depreciation and amortization and the other costs of running the business, from total revenue. The Committee views this as an important indicator of how well our management is growing revenue while managing operating costs. Adjusted operating income excludes the effect of special items, which provides more comparable financial results from period to period. | ||
Cash flow from operations | Target range: $35.3 billion to $37.1 billion | |
Cash flow from operations is a measure of the cash generated from our ongoing, regular business activities and is used to fund expansion and modernization of our networks, service and repay external financing, pay dividends and invest in new businesses and spectrum. | ||
ESG metrics | Targets: Workforce diversity of 60.6%, diverse supplier spend of $5.5 billion, and carbon intensity reduction of 16.0% | |
ESG metrics relating to diversity and sustainability reinforce our corporate purpose to “create the networks that move the world forward.” As a large, multinational company with a highly diverse customer and employee base, we know that our operations are strengthened when we leverage the diversity of thought and cultures of our workforce and business partners. We are also committed to reducing the environmental impact of our operations because we believe that effective emissions and energy management is not only necessary for the transition to a low-carbon economy, but also lowers current and future operating costs. Therefore, the Committee utilizes diversity and sustainability metrics and targets that measure the percentage of our U.S.-based workforce that is comprised of women and minorities (workforce diversity), the amount of our overall annual supplier spend with, or directed to, diverse firms (diverse supplier spend) and the percentage by which we reduce our carbon intensity – the amount of carbon our business emits divided by the terabytes of data we transport over our networks – as compared to the prior year (carbon intensity reduction).
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The Short-Term Plan provides for performance measures to be adjusted to exclude the impact of certain types of events not contemplated at the time the performance measures were set, such as significant transactions, changes in legal or regulatory policy and other special items. The Committee did not make any adjustments in determining Verizon’s performance against the performance measures.
$109.7B Service and other revenue |
$31.1B Adjusted operating income |
$37.5B Cash flow from operations | ||
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60.3% U.S.-based workforce comprised of women and minorities (below target performance)
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$6.1B annual supplier spend with, or directed to, diverse firms2 (above target performance)
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17.8% reduction in carbon intensity (above target performance)
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1 | A reconciliation of non-GAAP measures to the most directly comparable GAAP measures may be found in Appendix B. | |
2 | For the twelve-month period ended September 30, 2023 or November 30, 2023, depending on the tier of supplier. |
Based on its assessment of Verizon’s performance against the Verizon corporate measures and targets set forth above, the Committee approved a payout percentage for all of the employees participating in the Short-Term Plan of 109%.
The following table shows the actual Short-Term Plan award earned by each named executive officer based on the payout percentages detailed above.
Named executive officer | Target award | x | Payout percentage | = | Actual award | ||
Mr. Vestberg | $ | 3,750,000 | 109% | $ | 4,087,500 | ||
Mr. Skiadas* | $ | 987,500 | 109% | $ | 1,076,375 | ||
Mr. Sampath | $ | 1,575,000 | 109% | $ | 1,716,750 | ||
Mr. Malady | $ | 1,500,000 | 109% | $ | 1,635,000 | ||
Mr. Silliman | $ | 1,350,000 | 109% | $ | 1,471,500 | ||
Mr. Ellis** | $ | 1,425,000 | 109% | $ | 517,750 |
* | The dollar values shown for Mr. Skiadas’s target award and actual award reflect Mr. Skiadas’s total target award opportunity for 2023 after giving effect to the prorated increase to his target award percentage in April 2023. |
** | Mr. Ellis’s actual award was prorated to reflect his involuntary separation from Verizon on April 29, 2023. |
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The Long-Term Plan is intended to align executives’ and shareholders’ interests and to reward participants for creating long-term shareholder value.
Annual Long-Term Plan awards are made in PSUs and RSUs. The value of each PSU or RSU is equal to the value of one share of Verizon common stock. The Committee assumes each executive will earn 100% of the PSUs and RSUs awarded for purposes of determining the total compensation opportunity. PSUs and RSUs accrue dividend equivalents that are deemed to be reinvested in PSUs and RSUs, respectively. These dividend equivalents are paid when, and only to the extent that, the related PSUs and RSUs are actually earned. PSUs are earned over a three-year performance cycle, with cliff vesting at the end of the three-year period. The Committee believes that a three-year performance cycle is appropriate for the PSU awards because a multi-year performance cycle measures the effectiveness of management’s execution of long-term strategies and the effect on shareholder value. RSUs vest ratably over three years (as opposed to a single, longer cliff vesting schedule), which aligns with market practice and enables us to continue to attract and retain key executive talent.
The 2023 Long-Term Plan awards for executives other than Mr. Vestberg, were comprised of 60% PSUs and 40% RSUs, consistent with prior years. Mr. Vestberg’s 2023 award was comprised of 67% PSUs and 33% RSUs. The Committee retained the PSU performance metrics and weightings from the 2022 awards, with one-third based on Verizon’s cumulative free cash flow, one-third based on Verizon’s adjusted EPS and one-third based on Verizon’s service and other revenue over the three-year performance period. The Committee also retained relative total shareholder return (TSR) as a modifier to the PSU vesting percentage as compared against the companies in the S&P 100.
The number of PSUs actually earned and paid is determined based upon Verizon’s achievement of pre-established performance targets over the three-year performance cycle, and the ultimate value of each PSU depends on Verizon’s stock price. Because the value of PSUs is linked to both stock price and performance targets, PSUs provide a strong incentive to executives to deliver value to Verizon’s shareholders. RSUs also provide a performance link as the value of the award depends on Verizon’s stock price. Both PSUs and RSUs provide a retention incentive by requiring the executive to remain employed with Verizon through the end of the applicable vesting period, subject to certain qualifying separations. The 2023 PSUs and RSUs are payable in shares of Verizon stock.
The Committee set the annual target long-term incentive award levels to create an appropriate total compensation opportunity for the named executive officers in light of the Committee’s reference of the 50th percentile for comparable executives within the peer group and the compensation mix considerations described above, and taking into account market practices for each individual’s role and responsibilities, the individual’s performance, the strategic impact of the individual’s role and internal pay alignment.
The 2023 target award opportunity for the named executive officers was allocated between PSUs and RSUs as noted above, and the target award opportunity allocated to each type of award was converted into a target number of units using the closing price of Verizon’s common stock on the grant date.
Named executive officer | As a dollar value | |
Mr. Vestberg | $ | 18,000,000 |
Mr. Skiadas* | $ | 7,000,000 |
Mr. Sampath | $ | 8,500,000 |
Mr. Malady | $ | 8,000,000 |
Mr. Silliman | $ | 7,500,000 |
Mr. Ellis | $ | 7,000,000 |
* | The dollar value for Mr. Skiadas reflects the total target award opportunity for 2023 after giving effect to the prorated incremental award granted in May 2023 upon his promotion to Executive Vice President and Chief Financial Officer. |
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Each of the named executive officers other than Mr. Vestberg, received 60% of his 2023 Long-Term Plan award in the form of PSUs and 40% in the form of RSUs, consistent with past practice, which the Committee believes incentivizes our executives to focus on our long-term operational goals and to deliver TSR performance, as well as encourages retention among our highly-qualified team. For Mr. Vestberg, the Committee increased the mix of PSUs to 67% of his 2023 award, and reduced the RSUs to 33% of his award, which further emphasizes the importance of Mr. Vestberg delivering on our long-term operational goals and TSR performance. One-third of the 2023 PSUs is eligible to vest based on Verizon’s cumulative adjusted EPS, one-third is eligible to vest based on Verizon’s cumulative free cash flow and one-third is eligible to vest based on Verizon’s service and other revenue. The number of PSUs that will ultimately vest may be decreased or increased by up to 25% depending on Verizon’s TSR position at the end of the three-year period compared with the companies in the S&P 100 as constituted on the date the awards were granted.
Adjusted earnings per share metric
One-third of the 2023 PSUs will vest based on Verizon’s cumulative adjusted earnings per share (EPS PSUs). The percentage of the EPS PSUs awarded for the 2023-2025 performance cycle that will vest is based on the extent to which Verizon’s cumulative adjusted EPS over the performance cycle meets or exceeds the cumulative adjusted EPS performance levels set by the Committee at the beginning of the performance cycle. Adjusted EPS is defined as Verizon’s cumulative earnings per share over the three-year performance period, adjusted to exclude the impact of special items, including the benefit of any repurchases of Verizon’s common stock under a share buyback program, and is subject to adjustment to eliminate the financial impact of significant transactions, changes in legal or regulatory policy and other extraordinary items.
The cumulative adjusted EPS target for the 2023-2025 performance cycle was set at a level reflective of our three-year strategic plan, which the Committee believes is attainable, but challenging in light of the business environment. The number of EPS PSUs that will vest ranges from 0%, if actual performance is below the threshold level, to 200%, if actual performance is at or above the maximum cumulative EPS level. The number of EPS PSUs that will vest in-between identified performance levels is determined by linear interpolation between vesting percentage levels.
Free cash flow metric
One-third of the 2023 PSUs will vest based on Verizon’s cumulative free cash flow (FCF PSUs). The percentage of the FCF PSUs awarded for the 2023-2025 performance cycle that will vest is based on the extent to which Verizon’s cumulative free cash flow over the performance cycle meets or exceeds the cumulative free cash flow performance levels set by the Committee at the beginning of the performance cycle. Free cash flow is calculated by subtracting capital expenditures from the total of cash flow from operations and is subject to adjustment to eliminate the financial impact of significant transactions, changes in legal or regulatory policy and other extraordinary items.
The cumulative free cash flow target for the 2023-2025 performance cycle was set at a level reflective of our three-year strategic plan, which the Committee believes is attainable, but challenging in light of the business environment. The number of FCF PSUs that will vest ranges from 0%, if actual performance is below the threshold level, to 200%, if actual performance is at or above the maximum cumulative free cash flow level. The number of FCF PSUs that will vest in-between identified performance levels is determined by linear interpolation between vesting percentage levels.
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Service and other revenue metric
One-third of the 2023 PSUs will vest based on Verizon’s cumulative service and other revenue (SOR PSUs). The percentage of the SOR PSUs awarded for the 2023-2025 performance cycle that will vest is based on the extent to which Verizon’s cumulative service and other revenue over the performance cycle meets or exceeds the cumulative service and other revenue performance levels set by the Committee at the beginning of the performance cycle. Service and other revenue is defined as Verizon’s cumulative revenue generated from Verizon’s wireless and wireline businesses, excluding revenue related to wireless equipment, on a consolidated basis over the performance cycle, subject to adjustment to eliminate the financial impact of significant transactions, changes in legal or regulatory policy and other extraordinary items.
The cumulative service and other revenue target for the 2023-2025 performance cycle was set at a level reflective of our three-year strategic plan, which the Committee believes is attainable, but challenging in light of the business environment. The number of SOR PSUs that will vest ranges from 0%, if actual performance is below the threshold level, to 200%, if actual performance is at or above the maximum cumulative service and other revenue level. The number of SOR PSUs that will vest in-between identified performance levels is determined by linear interpolation between vesting percentage levels.
Total shareholder return modifier
After the Committee determines the extent to which the EPS PSU, FCF PSU and SOR PSU performance measures have been achieved, the overall PSU vesting percentage may be increased or decreased by up to 25% depending on Verizon’s TSR position compared with the companies in the S&P 100 as constituted on the date the awards were granted. If Verizon ranks at or above the 75th percentile, 25% will be added to the PSU vesting percentage (up to a maximum payout of 200%). If Verizon ranks at or below the 25th percentile, 25% will be subtracted from the PSU vesting percentage. If Verizon ranks at the median, there will be no change to the PSU vesting percentage, and for ranks in between the 25th and 75th percentile, the modifier will be determined by linear interpolation between the levels.
Why these performance measures?
The Committee selected adjusted EPS, free cash flow and service and other revenue to focus our executives on our long-term operational goals, with cumulative adjusted EPS focusing on our profitability, cumulative free cash flow focusing on our ability to generate cash from operations and cumulative service and other revenue focusing on our ability to be successful in attracting and retaining customers, penetrating key markets with our products and services and creating high-quality growth. The TSR modifier is a valuable indicator of our success because it measures our performance in returning value to our shareholders in comparison to alternative investments our shareholders could have made. For purposes of measuring our TSR positioning, the Committee utilizes the companies in the S&P 100 index because the Committee believes that it balances having companies comparable to Verizon’s size in the comparator group with having a large enough number of companies to ensure that no one company overly impacts the outcomes in a given year and, further, that the S&P 100 is a recognized index, which is easy for shareholders and employees to track and understand.
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With respect to the PSUs awarded in 2021, the Committee determined the number of PSUs that vested for a participant based on the level of achievement of two performance metrics over the three-year performance cycle – adjusted EPS and free cash flow – subject to adjustment depending on Verizon’s TSR position at the end of the three-year period compared with the companies in the S&P 100 as constituted on the date the awards were granted.
2021-2023 EPS PSUs. Fifty-percent of the PSUs awarded were eligible to vest based on Verizon’s cumulative adjusted EPS over the 2021-2023 performance cycle compared to the performance targets set by the Committee at the beginning of the three-year cycle. The following table shows the percentage of EPS PSUs awarded that would vest based on Verizon’s cumulative adjusted EPS over the 2021-2023 performance cycle at different performance levels.
Verizon’s cumulative adjusted EPS1 | EPS vested percentage2 | |
Greater than or equal to $17.00 | 200% | |
$16.50 | 150% | |
$15.94 | 100% | |
$15.00 | 50% | |
Less than $15.00 | 0% |
1 | Adjusted EPS is defined as Verizon’s cumulative earnings per share over the three-year performance period, adjusted to exclude the impact of special items, including the benefit of any repurchases of Verizon’s common stock under a share buyback program, and is subject to adjustment to eliminate the financial impact of significant transactions, changes in legal or regulatory policy and other extraordinary items. |
2 | For achievement between the stated levels, vesting is determined by linear interpolation. |
At the time the 2021-2023 award was granted, the Committee provided for the EPS metric to be determined on an adjusted basis, to preserve the intended incentives by excluding the impact of certain types of events not contemplated by our financial plan, such as significant transactions, changes in legal or regulatory policy and other special items. In determining Verizon’s adjusted EPS over the performance cycle, the Committee made adjustments to normalize the impacts of strategic transactions, including amortization of acquisition-related intangible assets, and impacts resulting from the 2021 acquisition of C-Band spectrum through the Federal Trade Commission’s Auction 107 (C-Band Acquisition), each of which were not contemplated when the EPS PSU targets were set. These adjustments are set forth in Appendix B. In accordance with this pre-established adjustment methodology, the Committee determined that Verizon’s adjusted EPS over the performance cycle was $14.73, which resulted in a vesting percentage of 0% for the EPS PSUs.
2021-2023 FCF PSUs. Fifty-percent of the PSUs awarded were eligible to vest based on Verizon’s cumulative free cash flow over the 2021-2023 performance cycle compared to the performance targets set by the Committee at the beginning of the three-year cycle. The following table shows the percentage of FCF PSUs awarded that would vest based on Verizon’s cumulative free cash flow over the 2021-2023 performance cycle at different performance levels.
Verizon’s cumulative free cash flow1 (in billions) | FCF vested percentage2 | |
Greater than $62.5 | 200% | |
$57.6 | 150% | |
$52.8 | 100% | |
$43.8 | 50% | |
Less than $43.8 | 0% |
1 | Free cash flow is calculated by subtracting capital expenditures from the total of cash flow from operations. |
2 | For achievement between the stated levels, vesting is determined by linear interpolation. |
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At the time the 2021-2023 award was granted, the Committee provided for free cash flow to be determined on an adjusted basis, to preserve the intended incentives by excluding the impact of certain types of events not contemplated by our financial plan, such as significant transactions, changes in legal or regulatory policy and other special items. In determining Verizon’s free cash flow over the performance cycle, the Committee made adjustments to normalize the impacts of the C-Band Acquisition on free cash flow results, which were not contemplated when the FCF PSU targets were set. These adjustments are set forth in Appendix B. In accordance with this pre-established adjustment methodology, the Committee determined that Verizon’s cumulative free cash flow over the performance cycle was $48.7 billion, which resulted in a vesting percentage of 77% for the FCF PSUs.
Relative total shareholder return modifier. After the Committee determined the extent to which the EPS PSU and FCF PSU performance measures have been achieved, the overall PSU vesting percentage could be increased or decreased by up to 25% depending on Verizon’s TSR position compared with the companies in the S&P 100 as constituted on the date the awards were granted. If Verizon ranked at or above the 75th percentile, 25% would be added to the PSU vesting percentage (up to a maximum payout of 200%). If Verizon ranked at or below the 25th percentile, 25% would be subtracted from the PSU vesting percentage. If Verizon ranked at the median, there would be no change to the PSU vesting percentage, and for ranks in between the 25th and 75th percentile, the modifier would be determined by linear interpolation between the levels. Over the three-year performance cycle ending December 31, 2023, Verizon’s TSR ranked 92nd among the S&P 100 as constituted on the date the awards were granted, resulting in 25% being subtracted from the final PSU vesting percentage.
2021-2023 relative TSR modifier based on Verizon’s TSR rank among S&P 100
2021-2023 PSU payout. Based on the results described above, in the first quarter of 2024 the Committee approved a payment to our named executive officers of 14% of the PSUs awarded for the 2021-2023 performance cycle, which represents the weighted average of the EPS PSU and FCF PSU vesting percentages described above, minus 25% as a result of the TSR modifier, plus dividend equivalents credited on those vested PSUs.
When Mr. Vestberg was appointed CEO in August 2018, the Committee recommended, and the independent members of the Board approved, a special one-time equity award to Mr. Vestberg under the Long-Term Plan to provide an additional incentive to drive Verizon’s return on equity (ROE) over a five-year performance period. The award was granted on August 1, 2018 and was entirely performance-based in the form of PSUs. The PSUs represented shares of Verizon common stock that would become payable after the completion of a five-year performance cycle ending on July 31, 2023, provided that the pre-established performance criterion was achieved and Mr. Vestberg remained employed throughout the performance cycle. The number of PSUs that were eligible to vest would be determined based on Verizon’s average annual ROE during the performance cycle. No PSUs would vest unless Verizon’s average annual ROE met the minimum threshold percentage of 18%. If Verizon’s average annual ROE met the target percentage of 28%, 100% of the nominal number of the PSUs granted would vest and a maximum of two times the nominal number of PSUs granted would vest if Verizon’s average annual ROE was at least 38% at the conclusion of the performance cycle. If Verizon’s average annual ROE during the five-year performance cycle was greater than 18% but less than 28%, or was greater than 28% but less than 38%, the percentage of the PSUs granted that would vest would be determined on an interpolated scale. In September 2023, the Committee determined that Verizon’s average annual ROE was 28% over the five-year performance cycle ending on July 31, 2023. As a result, the Committee recommended, and the independent members of the Board approved, a payment of 100% of the number of PSUs awarded, plus accrued dividends credited on those PSUs. The PSUs were paid in shares in accordance with the terms of the award, and Mr. Vestberg is required to hold the shares he received (net of tax withholding) for at least two years following the vesting date unless he dies or becomes disabled.
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In January 2024, the Committee approved a compensation increase for Mr. Skiadas based on its assessment of the market competitiveness of his total compensation opportunity, his tenure and experience and internal pay equity considerations. Mr. Skiadas's base salary increased from $800,000 to $1,000,000, effective January 1, 2024, and his target long-term incentive opportunity increased from $7,000,000 to $8,500,000.
Verizon also provides the named executive officers with limited additional benefits as generally described below, which are subject to applicable taxes and not intended to be a significant portion of their overall pay package. No named executive officer is eligible for a tax gross-up payment in connection with any of these benefits, including with respect to excise tax liability arising from any Internal Revenue Code Section 280G excess parachute payments.
Transportation. Verizon provides limited aircraft and ground transportation benefits to enhance the safety and security of certain named executive officers. These transportation benefits also serve business purposes, such as allowing an executive to attend to confidential business matters while in transit.
Executive life insurance. Verizon offers the named executive officers and other executives the opportunity to participate in an executive life insurance program in lieu of participating in our basic and supplemental life insurance programs. The executives who elect to participate in the executive life insurance program own the life insurance policy, and Verizon provides an annual cash payment to defray a portion of the annual premiums.
Financial planning. Verizon provides a voluntary Company-sponsored financial planning benefit program for the named executive officers and other executives. If an executive participates in the program, the cost of the financial planning benefit is included in the executive’s income.
For additional information on these benefits, see footnote 5 to the Summary Compensation table on page 40.
Over 15 years ago, the Committee determined that guaranteed pay in the form of defined benefit pension and supplemental executive retirement benefits was not consistent with Verizon’s pay-for-performance culture. Accordingly, effective June 30, 2006, Verizon froze all future pension accruals under its management tax-qualified and supplemental defined benefit retirement plans. These legacy retirement benefits that were previously provided to certain executives, including Messrs. Malady and Silliman, are described in more detail under the section titled “Pension plans” beginning on page 45.
During 2023, all of Verizon’s named executive officers were eligible to participate in Verizon’s tax-qualified defined contribution savings plan, the Verizon Management Savings Plan, referred to as the Savings Plan, and Verizon’s nonqualified defined contribution savings plan, the Verizon Executive Deferral Plan, referred to as the Deferral Plan. The named executive officers participate in these plans on the same terms as other participants in the plans. Under the Savings Plan, executives may defer “eligible pay,” which includes base salary up to certain compensation limits imposed by the Internal Revenue Code, and Verizon provides a matching contribution equal to 100% of the first 6% of eligible pay deferred. The Deferral Plan is designed to “restore” benefits that are limited or cut back under the Savings Plan due to the Internal Revenue Code limits. Accordingly, under the Deferral Plan, a participant may elect to defer his or her base pay and short-term incentive that could not be deferred into the Savings Plan due to the Internal Revenue Code limits. Verizon provides the same matching contribution on these deferred amounts as the participant would have received if such amounts had been permitted to be deferred into the Savings Plan.
The Committee believes that maintaining a competitive level of separation benefits is appropriate as part of an overall program designed to attract, retain and motivate the highest-quality management team. However, the Committee does not believe that named executive officers should be entitled to receive cash severance benefits merely because a change in control occurs. Therefore, the payment of cash severance benefits is triggered only by an actual or constructive termination of employment.
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Verizon was not a party to any employment agreement with any of the named executive officers in 2023. All senior managers (including all named executive officers except Mr. Vestberg) are eligible to participate in the Verizon Senior Manager Severance Plan, which provides certain separation benefits to participants whose employment is involuntarily terminated without cause. As CEO, Mr. Vestberg is not eligible to participate in the Senior Manager Severance Plan and is not entitled to receive any cash severance benefits upon his separation from the Company.
The Senior Manager Severance Plan is generally consistent with the terms and conditions of Verizon’s broad-based severance plan for management employees other than senior managers. Under the Senior Manager Severance Plan, if a participant has been involuntarily terminated without cause (or, in the case of a named executive officer, if the independent members of the Board determine that there has been a qualifying separation), the participant is eligible to receive a lump-sum cash separation payment equal to a multiple of his or her base salary plus target short-term incentive opportunity, along with continuing medical, dental and vision coverage for the applicable severance period. To the extent that a senior manager is eligible for severance benefits under any other arrangement, that person may not receive any duplicative benefits under the Senior Manager Severance Plan. The Senior Manager Severance Plan does not provide for any severance benefits based upon a change in control of the Company.
Under the Senior Manager Severance Plan, each named executive officer, other than Mr. Vestberg, is eligible to receive a cash separation payment equal to two times the sum of his or her base salary and target short-term incentive opportunity. To be eligible for any severance benefits, a participant must execute a release of claims against Verizon in the form satisfactory to Verizon and agree not to compete or interfere with any Verizon business for a period of one year after separation.
Mr. Ellis became entitled to separation benefits under the Senior Manager Severance Plan upon his involuntary separation from Verizon effective April 29, 2023, which are described in more detail on page 53. Mr. Ellis. Mr. Ellis did not receive any enhanced benefits upon his separation from service.
Consistent with the Committee’s belief that named executive officers should not receive cash severance benefits merely because a change in control occurs, the Long-Term Plan does not allow “single-trigger” accelerated vesting and payment of outstanding awards upon a change in control. Instead, the Long-Term Plan requires a “double trigger.” Specifically, if in the 12 months following a change in control a participant’s employment is terminated without cause, all of that participant’s then-unvested PSUs will fully vest at the target level performance, then-unvested RSUs will fully vest, and those PSUs and RSUs (including accrued dividend equivalents) will become payable on the regularly scheduled payment date after the end of the applicable award cycle.
Other compensation policies
Stock ownership guidelines
To further align the interests of Verizon’s management with those of our shareholders, the Committee has approved guidelines that require each named executive officer and other executives to maintain certain stock ownership levels within five years of assuming their leadership roles.
• | The CEO is required to maintain share ownership equal to at least seven times base salary. |
• | Other named executive officers are required to maintain share ownership equal to at least four times base salary. |
In determining whether an executive meets the required ownership level, the calculation includes any shares held by the executive directly or through a broker, shares held through the Verizon tax-qualified savings plan or the Verizon nonqualified savings plan and other deferred compensation plans and arrangements that are valued by reference to Verizon’s stock. The calculation does not include any unvested PSUs or RSUs. Each of the named executive officers is in compliance with the stock ownership guidelines. In addition, none of the named executive officers has engaged in any pledging transaction with respect to shares of Verizon’s stock.
Policy on hedging Company stock
Verizon believes that ownership of Verizon stock by the Company’s executives and members of the Board of Directors promotes alignment of the interests of the Company’s leadership with those of its stockholders. Verizon recognizes that transactions that are designed to hedge or offset declines in the market value of Verizon stock can disrupt this alignment. Hedging transactions allow the holder to own Verizon stock without the full risks and rewards of ownership, potentially separating the holder’s interests from those of other Verizon shareholders. Therefore, all employees receiving equity-based awards with respect to Verizon stock and members of the Verizon Board of Directors are prohibited from engaging in any transaction involving Verizon stock that is designed to hedge or offset any decrease in the market value of Verizon stock beneficially owned by the employee or Director. This prohibition includes, but is not limited to, buying and/or writing puts and calls, prepaid variable forward contracts, equity swaps, collars, and exchange funds.
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In addition, the Verizon Code of Conduct prohibits all employees from engaging in any transaction that permits them to benefit from the devaluation of Verizon’s stock, bonds, or other securities, including engaging in short selling or buying “put” options on Verizon stock.
Holding executives accountable – Verizon’s clawback policies
The Committee believes it is appropriate to hold senior executives accountable for misconduct that results in significant reputational or financial harm to Verizon. Accordingly, the Committee has adopted the following policies:
• | Senior executive clawback policy. Verizon has the right to cancel or “claw back” the cash- and equity-based incentive compensation of senior executives who engage in willful misconduct in the performance of their duties that results in significant reputational or financial harm to Verizon. |
• | Long-Term Plan clawback provisions. Annual equity grants under the Verizon Long-Term Plan give the Company the right to (i) require the recipient to forfeit or repay incentive-based compensation (both short-term and long-term) if Verizon is required to materially restate its financial results based on the individual’s willful misconduct or gross negligence while employed by the Company (where such restatement would have resulted in a lower payment being made to the individual) and (ii) enforce any right or obligation that Verizon may have regarding the clawback of incentive-based compensation under federal securities or other applicable laws. |
The Committee also adopted an additional clawback policy with an effective date of October 2, 2023, in compliance with the final clawback rules adopted by the SEC and the listing standards of the NYSE and Nasdaq (Clawback Rules). This additional clawback policy generally provides for the mandatory recovery of erroneously awarded “incentive-based compensation” (as defined in the Clawback Rules) from current and former executive officers in the event that Verizon is required to prepare an accounting restatement, in accordance with the Clawback Rules. A copy of this clawback policy is filed as an exhibit to Verizon’s Annual Report on Form 10-K for the year ended December 31, 2023.
These policies do not limit any other rights or remedies Verizon may have in the circumstances, such as terminating the executive or initiating other disciplinary procedures. Disclosure of any clawbacks will be made in accordance with applicable law and listing requirements.
Shareholder approval of certain severance arrangements
The Committee has a policy of seeking shareholder approval or ratification of any new employment or severance agreement with an executive officer that provides for a total cash value severance payment exceeding 2.99 times the sum of the executive’s base salary plus Short-Term Plan target opportunity. The policy defines severance pay broadly to include payments for any consulting services, payments to secure a non-compete agreement, payments to settle any litigation or claim, payments to offset tax liabilities, payments or benefits that are not generally available to similarly situated management employees and payments in excess of, or outside, the terms of a Verizon plan or policy.
Tax and accounting considerations
A publicly-held company is generally prohibited from deducting compensation paid to a current or former named executive officer that exceeds $1 million during the tax year. The Committee takes this deductibility limitation into account in its consideration of compensation matters. However, the Committee has the flexibility to take any compensation-related actions that it determines are in the best interests of Verizon and our shareholders, including awarding compensation that may not be deductible for tax purposes.
The Committee also considers the effect of certain accounting rules that apply to the various aspects of the compensation program for our named executive officers. The Committee reviews potential accounting effects in determining whether its compensation actions are in the best interests of Verizon and our shareholders.
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Compensation Committee Report
The Human Resources Committee has reviewed and discussed the Compensation Discussion and Analysis with management. Based on such review and discussions, the Committee recommended to the Board of Directors, and the Board has approved, the inclusion of the Compensation Discussion and Analysis in this proxy statement and Verizon’s Annual Report on Form 10-K for the year ended December 31, 2023.
Respectfully submitted,
The Human Resources Committee
Daniel Schulman, Chair
Mark Bertolini
Melanie Healey
Clarence Otis, Jr.
Rodney Slater
March 14, 2024
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The following table provides information about the compensation paid to each of our named executive officers in 2021, 2022 and 2023.
Name and principal position (a) |
Year (b) |
Salary1 ($) (c) |
Bonus ($) (d) |
Stock awards2 ($) (e) |
Option awards ($) (f) |
Non-equity
incentive plan compensation3 ($) (g) |
Change
in pension value and nonqualified deferred compensation earnings4 ($) (h) |
All
other (i) |
Total (j) | |||||||||
Hans Vestberg Chairman and Chief Executive Officer |
2023 | 1,500,000 | 0 | 18,000,042 | 0 | 4,087,500 | 0 | 541,775 | 24,129,317 | |||||||||
2022 | 1,500,000 | 0 | 14,500,057 | 0 | 3,262,500 | 0 | 570,193 | 19,832,750 | ||||||||||
2021 | 1,500,000 | 0 | 14,500,057 | 0 | 3,825,000 | 0 | 517,814 | 20,342,871 | ||||||||||
Anthony Skiadas* Executive Vice President and Chief Financial Officer |
2023 | 741,667 | 0 | 7,000,069 | 0 | 1,076,375 | 0 | 113,202 | 8,931,313 | |||||||||
Sowmyanarayan Sampath** Executive Vice President and Group CEO – Verizon Consumer |
2023 | 1,016,667 | 0 | 8,500,049 | 0 | 1,716,750 | 0 | 146,496 | 11,379,962 | |||||||||
2022 | 779,808 | 0 | 7,000,050 | 0 | 838,463 | 0 | 135,805 | 8,754,126 | ||||||||||
Kyle Malady** Executive Vice President and Group CEO – Verizon Business |
2023 | 983,333 | 0 | 8,000,027 | 0 | 1,635,000 | 2,959 | 188,884 | 10,810,203 | |||||||||
2022 | 900,000 | 0 | 6,500,051 | 0 | 1,174,500 | 0 | 196,565 | 8,771,116 | ||||||||||
2021 | 850,000 | 0 | 5,250,065 | 0 | 1,402,500 | 166 | 171,971 | 7,674,702 | ||||||||||
Craig Silliman Executive Vice President and President – Verizon Global Services |
2023 | 900,000 | 0 | 7,500,021 | 0 | 1,471,500 | 633 | 172,028 | 10,044,182 | |||||||||
2022 | 850,000 | 0 | 6,500,098 | 0 | 1,109,250 | 0 | 175,149 | 8,634,497 | ||||||||||
Matthew Ellis* Former Executive Vice President and Chief Financial Officer |
2023 | 444,551 | 0 | 7,000,052 | 0 | 517,750 | 0 | 4,990,096 | 12,952,449 | |||||||||
2022 | 950,000 | 0 | 7,000,072 | 0 | 1,239,750 | 0 | 189,481 | 9,379,303 | ||||||||||
2021 | 950,000 | 0 | 6,525,007 | 0 | 1,453,500 | 0 | 183,382 | 9,111,889 | ||||||||||
* | Mr. Skiadas succeeded Mr. Ellis as Executive Vice President and Chief Financial Officer effective April 29, 2023. Prior to that appointment, Mr. Skiadas served as Verizon’s Senior Vice President and Controller. Mr. Ellis separated from Verizon on April 29, 2023. |
** | Mr. Sampath served as Executive Vice President and Group CEO – Verizon Business until March 2, 2023, and Mr. Malady succeeded Mr. Sampath in that role on that date. Prior to that appointment, Mr. Malady served as Executive Vice President and President — Global Networks and Technology. |
1 | For Mr. Ellis the amount in this column also includes cash paid in lieu of vacation upon his separation from the Company. |
2 | The amounts in this column reflect the aggregate grant date fair value of the PSUs and RSUs computed in accordance with FASB ASC Topic 718 based on the closing price of Verizon’s common stock on the grant date. The grant date fair value of each of the PSU awards granted to the named executive officers in the designated year as part of Verizon’s annual long-term incentive award program has been determined based on the vesting of 100% of the nominal PSUs awarded, which is the performance threshold the Company believed was most likely to be achieved under the awards on the grant date. The following table reflects the grant date fair value of the PSU awards, as well as the maximum value of these awards based on the closing price of Verizon’s common stock on the grant date if, due to the Company’s performance during the applicable performance cycle, the PSU awards vested at their maximum level. |
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Grant date fair value of PSUs | Maximum value of PSUs | |||||||||||
Name | 2021 ($) | 2022 ($) | 2023 ($) | 2021 ($) | 2022 ($) | 2023 ($) | ||||||
Mr. Vestberg | 8,700,045 | 8,700,045 | 12,200,005 | 17,400,090 | 17,400,090 | 24,400,010 | ||||||
Mr. Skiadas | 3,540,048 | 7,080,096 | ||||||||||
Mr. Sampath | 4,200,030 | 5,100,045 | 8,400,060 | 10,200,090 | ||||||||
Mr. Malady | 3,150,039 | 3,900,020 | 4,800,024 | 6,300,078 | 7,800,040 | 9,600,048 | ||||||
Mr. Silliman | 3,300,017 | 4,500,020 | 6,600,034 | 9,000,040 | ||||||||
Mr. Ellis | 3,915,004 | 4,200,022 | 4,200,016 | 7,830,008 | 8,400,044 | 8,400,032 |
3 | The amounts in this column for 2023 reflect the 2023 Short-Term Plan award paid to the named executive officers in February 2024 as described beginning on page 27. |
4 | Verizon froze all future pension accruals under its defined benefit plans in 2006. The named executive officers other than Messrs. Malady and Silliman are not eligible for pension benefits. The amounts in this column for 2023 for Messrs. Malady and Silliman reflect the sum of the change in the actuarial present value of the accumulated benefit under the defined benefit plans in the amounts of $2,959 and $633, respectively. Verizon’s nonqualified deferred compensation plans did not provide a preferential or “above market” rate of interest in 2023. |
5 | The following table provides the detail for 2023 compensation reported in the “All other compensation” column. |
Name | Personal use of company aircrafta ($) |
Personal use of company vehicleb ($) |
Company contributions to the tax qualified Savings Plan ($) |
Company contributions to the nonqualified Deferral Plan ($) |
Company contributions to the life insurance benefitc ($) |
Separation benefitsd ($) |
Othere ($) |
All other compensation total ($) | ||||||||
Mr. Vestberg | 92,794 | 4,971 | 19,800 | 265,950 | 134,976 | 0 | 23,284 | 541,775 | ||||||||
Mr. Skiadas | 0 | 0 | 19,800 | 53,928 | 28,474 | 0 | 11,000 | 113,202 | ||||||||
Mr. Sampath | 0 | 0 | 19,800 | 91,292 | 22,404 | 0 | 13,000 | 146,496 | ||||||||
Mr. Malady | 0 | 0 | 19,800 | 109,562 | 46,522 | 0 | 13,000 | 188,884 | ||||||||
Mr. Silliman | 0 | 0 | 19,800 | 100,697 | 38,531 | 0 | 13,000 | 172,028 | ||||||||
Mr. Ellis | 0 | 0 | 8,272 | 87,262 | 33,735 | 4,856,529 | 4,298 | 4,990,096 |
a | The aggregate incremental cost of the personal use of a Company aircraft is determined by multiplying the total 2023 personal flight hours by the incremental aircraft cost per hour. The incremental aircraft cost per hour is derived by adding the annual aircraft maintenance costs, fuel costs, aircraft trip expenses and crew trip expenses, and then dividing by the total annual flight hours. |
b | The aggregate incremental cost of the personal use of a Company vehicle is determined by (i) calculating the incremental vehicle cost per mile by dividing the annual lease and fuel costs by the total annual miles; (ii) multiplying the executive’s total 2023 personal miles by the incremental vehicle cost per mile; and (iii) adding the incremental driver cost (the total 2023 driver hours for the executive’s personal use multiplied by the driver’s hourly rate). |
c | Executive life insurance is available to U.S.-based executives on a voluntary basis. Executives who choose to participate in this program are excluded from the basic and supplemental life insurance programs that Verizon provides to management employees. The executive owns the insurance policy, chooses the level of coverage and is responsible for paying the premiums. However, Verizon pays each executive an amount, shown in this column, which is equal to a portion of the premium. Executives who choose not to participate in the executive life insurance plan do not receive that payment. For Messrs. Vestberg, Skiadas and Sampath, the executive life insurance policy provides a death benefit equal to five times the sum of the executive’s base salary plus his Short-Term Plan award opportunity at 75% of target level (capped at $10 million for Mr. Vestberg and capped at $8 million for Messrs. Skiadas and Sampath) if the executive dies before a designated date. For Messrs. Malady, Silliman and Ellis, the executive life insurance policy provides a death benefit equal to two times the sum of the executive’s base salary plus his Short-Term Plan award opportunity at 75% of target level if the executive dies before a designated date. This date is the latest of the participant’s retirement date, the date on which the participant reaches age 60 or the fifth anniversary of plan participation. |
d | For Mr. Ellis, the amount in this column represents the benefits payable under the Verizon Senior Manager Severance Plan in connection with his involuntary separation from the Company without cause on April 29, 2023 in the amount of $4,856,529 which consists of a cash severance benefit in the amount of $4,750,000, the Company’s estimated cost of providing medical, dental and vision coverage for two years in the amount of $60,797, the cost of providing outplacement services for one year in the amount of $14,500, financial planning benefits in the amount of $13,000 and an estimated payment of $18,232 to pay a portion of the annual premium for the executive life insurance policy owned by Mr. Ellis for one year following his separation date. |
e | This column represents the total amount of other perquisites and personal benefits provided. These other benefits consist of financial planning services in the amount of $21,300 for Mr. Vestberg, $11,000 for Mr. Skiadas, $13,000 for Mr. Sampath, $13,000 for Mr. Malady, $13,000 for Mr. Silliman, and $4,298 for Mr. Ellis; and $1,984 for a physical exam for Mr. Vestberg. |
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The following table provides information about the 2023 awards granted under the Short-Term Plan and the Long-Term Plan to each named executive officer.
Name (a) |
Type of |
Grant date |
Estimated future payouts under non-equity incentive plan awards2 |
Estimated
future payouts under equity incentive plan awards3 |
All other stock awards: Number of shares of stock or units4 (#) (i) |
All other option awards: Number of securities underlying options (#) (j) |
Exercise or base price of option awards ($/Sh) (k) |
Grant date fair value of stock and option awards5 ($) (l) | ||||||||||||||||
Threshold (c) |
Target ($) (d) |
Maximum ($) (e) |
Threshold (#) (f) |
Target (#) (g) |
Maximum (#) (h) |
|||||||||||||||||||
Mr. Vestberg | STP | – | 1,031,250 | 3,750,000 | 7,500,000 | |||||||||||||||||||
PSU | 3/1/2023 | 318,538 | 637,076 | 12,200,005 | ||||||||||||||||||||
RSU | 3/1/2023 | 151,437 | 5,800,037 | |||||||||||||||||||||
Mr. Skiadas | STP | – | 271,563 | 987,500 | 1,975,000 | |||||||||||||||||||
PSU | 3/1/2023 | 17,233 | 34,466 | 660,024 | ||||||||||||||||||||
PSU | 5/1/2023 | 74,400 | 148,800 | 2,880,024 | ||||||||||||||||||||
RSU | 3/1/2023 | 40,209 | 1,540,005 | |||||||||||||||||||||
RSU | 5/1/2023 | 49,600 | 1,920,016 | |||||||||||||||||||||
Mr. Sampath | STP | – | 433,125 | 1,575,000 | 3,150,000 | |||||||||||||||||||
PSU | 3/1/2023 | 125,327 | 250,654 | 4,800,024 | ||||||||||||||||||||
PSU | 3/2/2023 | 7,811 | 15,622 | 300,021 | ||||||||||||||||||||
RSU | 3/1/2023 | 83,551 | 3,200,003 | |||||||||||||||||||||
RSU | 3/2/2023 | 5,207 | 200,001 | |||||||||||||||||||||
Mr. Malady | STP | – | 412,500 | 1,500,000 | 3,000,000 | |||||||||||||||||||
PSU | 3/1/2023 | 125,327 | 250,654 | 4,800,024 | ||||||||||||||||||||
RSU | 3/1/2023 | 83,551 | 3,200,003 | |||||||||||||||||||||
Mr. Silliman | STP | – | 371,250 | 1,350,000 | 2,700,000 | |||||||||||||||||||
PSU | 3/1/2023 | 117,494 | 234,988 | 4,500,020 | ||||||||||||||||||||
RSU | 3/1/2023 | 78,329 | 3,000,001 | |||||||||||||||||||||
Mr. Ellis | STP | – | 391,875 | 1,425,000 | 2,850,000 | |||||||||||||||||||
PSU | 3/1/2023 | 109,661 | 219,322 | 4,200,016 | ||||||||||||||||||||
RSU | 3/1/2023 | 73,108 | 2,800,036 |
1 | These awards are described in the Compensation Discussion and Analysis beginning on page 23. |
2 | The actual amount awarded under the Short-Term Plan (STP) in 2023 was paid in February 2024 and is shown in column (g) of the Summary Compensation table on page 40. Mr. Skiadas’s target award opportunity was 90% of his base salary prior to May 2023. The dollar value shown here reflects Mr. Skiadas’s total target award opportunity for 2023 after giving effect to the prorated increase to his target award percentage in April 2023. |
3 | These columns reflect the potential payout range of PSU awards granted in 2023 to our named executive officers in accordance with the Company’s annual long-term incentive award program, as described beginning on page 31. At the conclusion of the three-year performance cycle, payouts can range from 0% to 200% of the target number of units awarded. One-third of the 2023 PSUs is eligible to vest based on Verizon’s cumulative free cash flow, one-third is eligible to vest based Verizon’s cumulative adjusted EPS and one-third is eligible to vest based on Verizon’s cumulative service and other revenue; and the number of PSUs that will ultimately vest may be increased or decreased by up to 25% (up to a maximum payout of 200%) depending on Verizon’s TSR position at the end of the three-year period compared with the companies in the S&P 100 as constituted on the date the awards were granted as described in more detail beginning on page 31. PSUs and the applicable dividend equivalents are paid only if and to the extent that the applicable performance criteria for the award are achieved at the end of the award cycle. When dividends are distributed to shareholders, dividend equivalents are credited on the PSU awards in an amount equal to the dollar amount of dividends that would be payable on the total number of PSUs credited as of the dividend distribution date and divided by the closing price of the Company’s common stock on that date and are subject to the same vesting requirements that apply to the underlying PSU award. |
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4 | This column reflects the number of RSUs granted in 2023 to the named executive officers in accordance with the Company’s annual long-term incentive award program. When dividends are distributed to shareholders, dividend equivalents are credited on the RSU awards in an amount equal to the dollar amount of dividends that would be payable on the total number of RSUs credited as of the dividend distribution date and divided by the closing price of the Company’s common stock on that date and are subject to the same vesting requirements that apply to the underlying RSU award. These dividend equivalents are only distributed to the award holder if and when the underlying RSU award vests. |
5 | This column reflects the grant date fair value of each equity award computed in accordance with FASB ASC Topic 718 based on the closing price of Verizon’s common stock on the grant date. For PSUs the grant date fair value has been determined based on the vesting of 100% of the nominal PSUs awarded, which is the performance threshold the Company believed was the most likely to be achieved under the grants. |
|
Option awards | Stock awards | ||||||||||||||||||
Name (a) |
Number of securities underlying unexercised options (#) exercisable (b) |
Number of securities underlying unexercised options (#) unexercisable (c) |
Equity incentive plan awards: Number of securities underlying unexercised unearned options (#) (d) |
Option exercise price ($) (e) |
Option (f) |
Number
of (g) |
Market
value (h) |
Equity incentive plan awards: Number of unearned shares, units or other rights that have not vested4,5 (#) (i) |
Equity
(j) |
Grant date | ||||||||||
Mr. Vestberg | 0 | 0 | 0 | 0 | 0 | 41,020 | 1,546,454 | 0 | 0 | 3/1/2021 | ||||||||||
80,915 | 3,050,496 | 45,515 | 1,715,916 | 3/1/2022 | ||||||||||||||||
159,944 | 6,029,889 | 329,704 | 12,429,841 | 3/1/2023 | ||||||||||||||||
Mr. Skiadas | 0 | 0 | 0 | 0 | 0 | 5,941 | 223,976 | 0 | 0 | 3/1/2021 | ||||||||||
12,278 | 462,881 | 6,906 | 260,356 | 3/1/2022 | ||||||||||||||||
42,468 | 1,601,044 | 17,837 | 672,455 | 3/1/2023 | ||||||||||||||||
51,518 | 1,942,229 | 75,732 | 2,855,096 | 5/1/2023 | ||||||||||||||||
Mr. Sampath | 0 | 0 | 0 | 0 | 0 | 7,921 | 298,622 | 0 | 0 | 3/1/2021 | ||||||||||
16,742 | 631,173 | 9,417 | 355,021 | 3/1/2022 | ||||||||||||||||
22,857 | 861,709 | 12,857 | 484,709 | 7/1/2022 | ||||||||||||||||
88,245 | 3,326,837 | 129,720 | 4,890,444 | 3/1/2023 | ||||||||||||||||
5,500 | 207,350 | 8,085 | 304,805 | 3/2/2023 | ||||||||||||||||
Mr. Malady | 0 | 0 | 0 | 0 | 0 | 14,853 | 559,958 | 0 | 0 | 3/1/2021 | ||||||||||
36,273 | 1,367,492 | 20,403 | 769,193 | 3/1/2022 | ||||||||||||||||
88,245 | 3,326,837 | 129,720 | 4,890,444 | 3/1/2023 | ||||||||||||||||
Mr. Silliman | 0 | 0 | 0 | 0 | 0 | 14,146 | 533,304 | 0 | 0 | 3/1/2021 | ||||||||||
20,853 | 786,158 | 0 | 0 | 2/2/2022 | ||||||||||||||||
30,693 | 1,157,126 | 17,264 | 650,853 | 3/1/2022 | ||||||||||||||||
82,729 | 3,118,883 | 121,613 | 4,584,810 | 3/1/2023 | ||||||||||||||||
Mr. Ellis | 0 | 0 | 0 | 0 | 0 | 2,976 | 112,195 | 0 | 0 | 3/1/2021 | ||||||||||
3,149 | 118,717 | 9,681 | 364,974 | 3/1/2022 | ||||||||||||||||
4,149 | 156,417 | 12,139 | 457,640 | 3/1/2023 |
1 | The amounts listed in this column represent the number of RSUs outstanding on December 31, 2023 with respect to the following awards: | |
(1) | for all of the named executive officers: (a) the third tranche of their 2021 annual RSU award granted on March 1, 2021, which vested on March 1, 2024; (b) the second and third tranches of their annual 2022 RSU award granted on March 1, 2022, one of which vested on March 1, 2024 and one of which is scheduled to vest on March 1, 2025; and (c) all three tranches of their annual 2023 RSU award granted on March 1, 2023, one of which vested on March 1, 2024 and two of which are scheduled to vest on March 1, 2025 and March 1, 2026, respectively. | |
(2) | for Mr. Skiadas, all three tranches of his incremental 2023 RSU award granted on May 1, 2023, one of which vested on March 1, 2024 and two of which are scheduled to vest on March 1, 2025 and March 1, 2026, respectively. | |
(3) | for Mr. Sampath, the second and third tranches of his incremental 2022 RSU award granted on July 1, 2022, one of which vested on March 1, 2024 and one of which is scheduled to vest on March 1, 2025; and all three tranches of his incremental 2023 RSU award granted on March 2, 2023, one of which vested on March 1, 2024 and two of which are scheduled to vest on March 1, 2025 and March 1, 2026, respectively. | |
(4) | for Mr. Silliman, his special 2022 retention RSU award granted February 2, 2022, which vested on February 2, 2024. |
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2 | When dividends are distributed to shareholders, dividend equivalents are credited on the RSU awards in an amount equal to the dollar amount of dividends that would be payable on the total number of RSUs credited as of the dividend distribution date and divided by the closing price of the Company’s common stock on that date and are subject to the same vesting requirements that apply to the underlying RSU award. These dividend equivalents are only distributed to the award holder if and when the underlying RSU award vests. This column includes dividend equivalent units that have accrued through December 31, 2023. | |
3 | The amounts in this column represent the value of the RSUs listed in column (g) based on a share price of $37.70, the closing price of Verizon’s common stock on December 29, 2023. | |
4 | The amounts listed in this column represent the number of PSUs outstanding on December 31, 2023 with respect to the following awards: | |
(1) | for all of the named executive officers, their 2022 annual PSU awards granted on March 1, 2022 which are scheduled to vest on December 31, 2024. | |
(2) | for all of the named executive officers, their 2023 annual PSU awards granted on March 1, 2023 which are scheduled to vest on December 31, 2025. | |
(3) | for Mr. Skiadas, his incremental 2023 PSU award granted on May 1, 2023 which is scheduled to vest on December 31, 2025. | |
(4) | for Mr. Sampath, his incremental 2022 PSU award granted on July 1, 2022 which is scheduled to vest on December 31, 2024 and his incremental 2023 PSU award granted on March 2, 2023 which is scheduled to vest on December 31, 2025. | |
5 | When dividends are distributed to shareholders, dividend equivalents are credited on the PSU awards in an amount equal to the dollar amount of dividends that would be payable on the total number of PSUs credited as of the dividend distribution date and divided by the closing price of the Company’s common stock on that date and are subject to the same vesting requirements that apply to the underlying PSU award. The PSUs, and the applicable dividend equivalents, are paid if and to the extent that the applicable award vests. As required by SEC rules, the number of units in this column represent the 2022 annual PSU awards at a 25% vesting percentage and the 2023 annual PSU awards at a 98% vesting percentage, in each case including accrued dividend equivalents through December 31, 2023 that will be paid if the awards vest at the indicated levels. | |
6 | The amounts in this column represent the value of the PSUs listed in column (i) based on a share price of $37.70, the closing price of Verizon’s common stock on December 29, 2023. |
The following table reports the value realized from the vesting of the following stock-based awards:
• | the annual 2021 PSUs that vested on December 31, 2023 for the named executive officers; |
• | the third tranche of the annual 2020 RSUs that vested on March 2, 2023 for the named executive officers; |
• | the second tranche of the annual 2021 RSUs that vested on March 1, 2023 for the named executive officers; |
• | the first tranche of the annual 2022 RSUs that vested on March 1, 2023 for the named executive officers; |
• | the special 2020 RSUs that vested on February 10, 2023 for Mr. Sampath; |
• | the special one-time equity award in the form of PSUs granted to Mr. Vestberg in 2018 that vested on July 31, 2023; and |
• | the special 2021 retention RSUs granted to Messrs. Skiadas and Sampath that vested on October 29, 2023. |
Based on the Company’s cumulative adjusted EPS and cumulative free cash flow over the performance period, and an adjustment based on the Company’s TSR as compared with the S&P 100 Index as constituted on the date the awards were granted, the Committee approved a vesting percentage of 14% of the target number of PSUs granted for the 2021-2023 performance cycle for all participants. The values of the 2021 PSU awards upon vesting for Messrs. Vestberg, Skiadas, Sampath, Malady, Silliman and Ellis were $989,528, $143,316, $191,081, $358,280 $341,216 and $345,066, respectively. The values of the third tranche of the 2020 RSU awards upon vesting for Messrs. Vestberg, Skiadas, Sampath, Malady, Silliman and Ellis were $1,380,683, $207,116, $236,168, $467,159, $493,131 and $648,837, respectively. The values of the second tranche of 2021 RSUs upon vesting for Messrs. Vestberg, Skiadas, Sampath, Malady, Silliman and Ellis were $1,487,517, $215,442, $287,255, $538,603, $512,961 and $669,368, respectively. The values of the first tranche of 2022 RSUs upon vesting for Messrs. Vestberg, Skiadas, Sampath, Malady, Silliman and Ellis were $1,467,104, $222,570, $717,950, $657,660, $556,485 and $708,268, respectively.
The value of the special 2020 RSU award for Mr. Sampath was $771,720.
Based on Verizon’s average annual ROE during the performance cycle, the Committee approved a vesting percentage of 100% of the target number of PSUs granted for Mr. Vestberg’s special one-time equity award granted in 2018. The value of the PSUs upon vesting was $8,458,179.
The value of the special 2021 retention RSUs upon vesting for Messrs. Skiadas and Sampath were $816,805 and $952,952, respectively.
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Name (a) |
Option awards | Stock awards | ||||||
Number of shares acquired on exercise (#) (b) |
Value realized on exercise ($) (c) |
Number of shares
acquired on vesting1 (#) (d) |
Value realized on
vesting1,2 ($) (e) | |||||
Mr. Vestberg | 0 | 0 | 387,524 | 13,783,011 | ||||
Mr. Skiadas | 0 | 0 | 45,056 | 1,605,249 | ||||
Mr. Sampath | 0 | 0 | 85,248 | 3,157,126 | ||||
Mr. Malady | 0 | 0 | 52,900 | 2,021,702 | ||||
Mr. Silliman | 0 | 0 | 49,812 | 1,903,793 | ||||
Mr. Ellis | 0 | 0 | 62,015 | 2,371,539 |
1 | The amounts include dividend equivalents that were credited on the 2021 PSU award that vested on December 31, 2023 in accordance with the terms of the award. The amounts also include dividend equivalents that were credited on the RSU awards that vested on March 1, 2023 and March 2, 2023, as well as the RSU award for Mr. Sampath that vested on February 10, 2023, the PSUs that vested on July 31, 2023 for Mr. Vestberg and the RSU awards for Messrs. Sampath and Silliman that vested on October 29, 2023, in each case in accordance with the terms of the award. With respect to Mr. Vestberg’s PSU award that vested on July 31, 2023, Mr. Vestberg is required to hold the shares he acquired upon vesting of those awards (net of tax withholding) for at least two years following the vesting date unless he dies or becomes disabled. |
2 | For Messrs. Vestberg, Skiadas, Sampath, Malady, Silliman and Ellis, the amounts in this column include the number of shares acquired on vesting of their 2021 annual PSU awards multiplied by $37.70, the closing price of Verizon’s common stock on December 29, 2023, which was the last business day prior to the December 31, 2023 vesting date. For all named executive officers, the amounts in this column include the number of shares acquired on vesting of the third tranche of their 2020 annual RSU award that vested on March 2, 2023, multiplied by $38.41, the closing price of Verizon’s common stock on March 2, 2023; and the number of shares acquired on vesting of the second tranche of their 2021 annual RSU award and the first tranche of their 2022 annual RSU award, both which vested on March 1, 2023, multiplied by $38.30, the closing price of Verizon’s common stock on March 1, 2023. For Mr. Vestberg, the amount also includes the number of shares acquired on vesting of his special 2018 PSU award multiplied by $34.08, the closing stock price of Verizon’s common stock on the July 31, 2023 vesting date. For Mr. Sampath, the amount also includes the number of shares acquired on vesting of his special 2020 RSU award multiplied by $40.01, the closing price of Verizon’s common stock on the February 10, 2023 vesting date and the special 2021 retention RSU award multiplied by $33.44, the closing price of Verizon’s common stock on October 27, 2023, the last business day prior to the October 29, 2023 vesting date. For Mr. Skiadas, the amount also includes number of shares acquired on vesting of the special 2021 retention RSU award multiplied by $33.44, the closing price of Verizon’s common stock on October 27, 2023, the last business day prior to the October 29, 2023 vesting date. |
Verizon froze all future pension accruals under its management tax-qualified and nonqualified defined benefit pension plans in 2006. None of the named executive officers other than Messrs. Malady and Silliman are eligible for a pension benefit.
Verizon Wireless Retirement Plan component of the Verizon Management Pension Plan. In 2001, Verizon Wireless consolidated the pension plans of several predecessor companies under the Verizon Wireless Retirement Plan. Effective December 31, 2017, Verizon merged the Verizon Wireless Retirement Plan into the Verizon Management Pension Plan (VMPP) and established it as a separate component plan within the VMPP. Mr. Malady is entitled to a tax-qualified benefit under this plan.
Mr. Malady’s tax-qualified benefit was determined as follows: for the period from January 1, 2001 until May 31, 2004, a cash balance formula that provided pay credits equal to two percent of annual eligible pay up to the IRS compensation limit (under the cash balance formula, a participant’s account balance is also credited on an ongoing basis with interest credits based upon the 30-year Treasury bond). The normal retirement age under the Verizon Wireless Retirement Plan is 65. Since there are no reductions applied to cash balance formula benefits, age 65 is used as Mr. Malady’s earliest unreduced retirement age. For Mr. Malady, eligible pay consisted of base salary and the Short-Term Plan award. No participant under the plan was eligible for cash balance credits under the nonqualified portion of the plan.
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The Pension Plan for Employees of MCI Communications Corporation and Subsidiaries component of the Verizon Management Pension Plan. In conjunction with the acquisition of MCI Communication Corporation in 2006, Verizon acquired The Pension Plan for Employees of MCI Communications Corporation and Subsidiaries. Benefits under this plan were previously frozen by MCI effective December 31, 1998. This pension plan was merged into the Verizon Management Pension Plan but maintained as a separate component within that plan.
Mr. Silliman accrued a tax-qualified benefit under a cash balance formula in this plan and his benefit was determined as follows: for the period from September 22, 1997 until December 31, 1998, a cash balance formula that provided pay credits ranging from two percent to six and one-half percent based on age of annual eligible pay up to the IRS compensation limit (under the cash balance formula, a participant’s account balance is also credited on an ongoing basis with interest credits defined in the plan document but no less than 4.04% per year). The normal retirement age under the MCI Plan is 65. Since there are no reductions applied to cash balance formula benefits, age 65 is used as Mr. Silliman’s earliest unreduced retirement age. For Mr. Silliman, eligible pay consisted of base salary and the Short-Term Plan award. Mr. Silliman did not receive cash balance credits under the nonqualified portion of the plan.
The following table illustrates the actuarial present value as of December 31, 2023 of pension benefits accumulated by Messrs. Malady and Silliman, the only named executive officers who are eligible for pension benefits.
Name (a) |
Plan name (b) |
Number of years credited service (#) (c) |
Present value of accumulated benefit1 ($) (d) |
Payments during last fiscal year ($) (e) | ||||
Mr. Malady | Verizon Wireless Retirement Plan – Qualified | 23 | 25,550 | 0 | ||||
Mr. Silliman | MCI – Qualified | 26 | 9,783 | 0 |
1 | The values are based on the assumptions for the actuarial determination of pension benefits as required by the relevant accounting standards as described in Note 11 to the Company’s consolidated financial statements for the year ended December 31, 2023, as included in Verizon’s 2023 Annual Report on Form 10-K. However, in accordance with the requirements for this table, the values are calculated using the executive’s retirement at the earliest age at which they can retire without having the retirement benefit reduced under the plan. |
The named executive officers are participants in the Company’s tax-qualified defined contribution savings plan, the Verizon Management Savings Plan, which is referred to as the Savings Plan, and its nonqualified defined contribution savings plan, the Verizon Executive Deferral Plan, which is referred to as the Deferral Plan. The named executive officers who participate in these plans are subject to the same terms as other participants in these plans.
Under the Savings Plan, executives may defer “eligible pay,” which includes base salary up to certain compensation limits imposed by the Internal Revenue Code, and Verizon provides a matching contribution equal to 100% of the first 6% of eligible pay deferred. The Deferral Plan is designed to restore benefits that are limited or cut back under the Savings Plan. Accordingly, under the Deferral Plan, a participant may elect to defer his or her base pay and Short-Term Plan award that could not be deferred into the Savings Plan due to the Internal Revenue Code limits. Verizon provides the same matching contribution on these deferred amounts as the participant would have received if such amounts had been permitted to be deferred into the Savings Plan. Prior to 2018, participants were permitted to defer certain long-term incentive awards under the Deferral Plan (those deferrals were not eligible for Company match). Deferrals of long-term incentive awards were no longer permitted after 2017. Long-term incentive awards deferred prior to 2018 remain subject to the terms of the award and the applicable deferral election.
Participants in the Deferral Plan may elect to invest their deferrals in the hypothetical investment options available to all participants under the Savings Plan or in a hypothetical cash account that earns a return rate equal to the long-term, high-grade corporate bond yield average as published by Moody’s Investor Services. Under SEC rules, earnings on balances invested in this option may be reportable as “above market” interest in the Summary Compensation table of the proxy statement in any given year if the rate of interest exceeds 120% of the applicable federal long-term rate at the time the plan interest rate or formula was originally established. Participants in the Deferral Plan may generally elect to receive their benefits in a lump sum or installments, commencing on a separation from service or specific date elected by the participant.
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Messrs. Skiadas and Malady also have an account balance under the Verizon Wireless Executive Savings Plan (ESP). The ESP is a nonqualified deferred compensation plan that was amended to freeze the accrual of benefits under the plan as of the close of business on December 31, 2004. Participants in the ESP no longer accrue any additional benefits other than market-based investment earnings or losses on their individual accounts. No new deferrals were permitted after 2004. Participants retain the ability to invest their frozen accounts in the investment options available under the ESP. Participants in the ESP do not receive matching contribution credits or retirement credits under the plan.
The Nonqualified Deferred Compensation table below shows the 2023 account activity for each named executive officer and includes each participating executive’s contributions, Company matching contributions, earnings, withdrawals and distributions and the aggregate balance of his or her total deferral account as of December 31, 2023.
Name (a) |
Executive
contributions in last FY1 ($) (b) |
Registrant
contributions in last FY2 ($) (c) |
Aggregate earnings in last FY ($) (d) |
Aggregate
withdrawals/ distributions3 ($) (e) |
Aggregate
balance at last FYE3 ($) (f) | |||||||
Mr. Vestberg | Verizon Executive Deferral Plan | 265,950 | 265,950 | 124,295 | 0 | 3,067,543 | ||||||
Mr. Skiadas | Verizon Executive Deferral Plan | 179,566 | 53,928 | 117,073 | (46,952) | 2,685,325 | ||||||
Verizon Wireless Executive Savings Plan | 0 | 0 | 7,146 | 0 | 227,641 | |||||||
Mr. Sampath | Verizon Executive Deferral Plan | 91,292 | 91,292 | 107,360 | 0 | 2,546,537 | ||||||
Mr. Malady | Verizon Executive Deferral Plan | 632,858 | 109,562 | 541,607 | 0 | 7,536,858 | ||||||
Verizon Wireless Executive Savings Plan | 0 | 0 | 22 | 0 | 416 | |||||||
Mr. Silliman | Verizon Executive Deferral Plan | 255,992 | 100,697 | 189,208 | (95,114) | 5,017,722 | ||||||
Mr. Ellis | Verizon Executive Deferral Plan | 87,262 | 87,262 | 116,238 | (865,752) | 2,575,198 |
1 | Of the amounts listed in this column, the following amounts are also included in the Summary Compensation table for 2023 in columns (c) and (j): for Mr. Vestberg, $70,200; for Mr. Skiadas, $32,754; for Mr. Sampath, $40,985; for Mr. Malady, $45,608; for Mr. Silliman, $34,142; and for Mr. Ellis, $12,877. |
2 | The amounts listed in this column are also included in columns (i) and (j) of the Summary Compensation table. |
3 | The aggregate amounts shown in columns (e) and (f) include the following amounts that were reported as compensation to the named executive officers in the Summary Compensation table for the following years: |
• | For Mr. Vestberg, a total of $2,768,418 was reported (2018 to 2023); | |
• | For Mr. Sampath, a total of $163,985 was reported (2023); | |
• | For Mr. Malady, a total of $2,211,741 was reported (2022 to 2023); | |
• | For Mr. Silliman, a total of $387,080 was reported (2023); and | |
• | For Mr. Ellis, a total of $1,540,073 was reported (2017 to 2023). |
The following summaries and tables describe and quantify the potential payments and benefits that would be provided to each of our named executive officers, other than Mr. Ellis, if a termination of employment or change in control of Verizon had occurred at the end of 2023 under Verizon’s compensation plans and agreements. On April 29, 2023, Mr. Ellis separated from Verizon. The payments and benefits that Mr. Ellis became entitled to receive in connection with his separation from Verizon on April 29, 2023 are discussed under the heading “Separation of Mr. Ellis” beginning on page 53.
Regardless of the manner in which a named executive officer’s employment terminates, the executive is entitled to receive amounts earned during the term of employment. This includes amounts accrued and vested under our pension plans and nonqualified deferred compensation plans, which are reported in the Pension Benefits and Nonqualified Deferred Compensation tables above. Those benefits are not included in the summaries and tables below
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In addition, amounts earned under our 2023 Short-Term Plan awards and amounts earned under our Long-Term Plan awards that vested on December 31, 2023 are not included in the summaries or tables below. Amounts earned under our 2023 Short-Term Plan awards are discussed in the Compensation Discussion and Analysis beginning on page 27 and are reported in the Summary Compensation table on page 40. Amounts earned under our Long-Term Plan awards that vested on December 31, 2023 are discussed in the Compensation Discussion and Analysis beginning on page 31 and are reported in the Option Exercises and Stock Vested table on page 45. If a named executive officer’s employment had terminated on December 31, 2023 for any reason other than for cause, the full amount of the 2023 Short-Term Plan award and the full amount of the Long-Term Plan awards that vested on December 31, 2023, in each case to the extent earned, would have been payable. These amounts would be determined and payable at the same time as awards are determined and paid to participating employees generally under those plans. In the event of a termination for cause, no amount would have been payable under these awards.
Mr. Vestberg. As CEO, Mr. Vestberg is not eligible to participate in the Senior Manager Severance Plan described below. Mr. Vestberg is also not a party to an employment agreement with Verizon or any other agreement that would provide him with cash severance benefits in the event his employment is involuntarily terminated by Verizon without cause.
Senior Manager Severance Plan. Verizon provides severance benefits to certain employees, including all of the named executive officers other than the CEO, under the Senior Manager Severance Plan. Under the plan, a named executive officer is eligible to receive severance benefits if he or she experiences a “qualifying separation” from Verizon, which is generally defined as an involuntary termination by Verizon without cause, a voluntary termination by the executive solely due to the executive’s refusal to accept a qualifying reclassification or relocation (as those terms are defined in the plan) or a determination by the independent members of the Board that the named executive officer has incurred a qualifying separation. A severance benefit, if triggered, is payable to an executive only if the executive executes a release of claims against Verizon in the form satisfactory to Verizon and agrees not to compete or interfere with any Verizon business for a period of one year after termination from employment and always to protect Verizon’s trade secrets and proprietary information.
If a named executive officer incurs a qualifying separation under the plan, he or she is eligible to receive the following benefits: (i) a lump-sum cash separation payment equal to two times the sum of his or her base salary and target Short-Term Plan award opportunity; and (ii) continued medical, dental and vision coverage for two years.
In addition, if the executive’s qualifying separation occurs prior to the last day of the year, the executive will receive a prorated Short-Term Plan award for the year in which the separation occurs, determined based on the actual level of achievement of the performance criteria under the Short-Term Plan for the applicable year and payable at the time that awards are payable to participating employees generally under the plan. To the extent that an executive also becomes eligible for severance benefits under any outstanding agreement, plan or any other arrangement, the executive’s cash severance payment under the Senior Manager Severance Plan will be reduced on a dollar-for-dollar basis by the amount of the severance benefits payable to the executive under such other agreement, plan or arrangement.
Other benefits. Upon an involuntary termination of employment without cause, a named executive officer would also be eligible to receive financial planning and outplacement services for one year following termination on the same basis as provided to other senior executives. However, executives would only be entitled to receive financial planning services if they participate in the program in the year in which their employment terminates. In addition, under the terms of the executive life insurance plan, each named executive officer who is retirement eligible upon termination and who continues to pay the annual premiums on the life insurance policy owned by the executive would be eligible to receive an annual cash payment from Verizon to defray a portion of the annual premiums until the latest of the executive’s attainment of age 60 or the completion of 5 years of plan participation. Retirement eligibility is generally defined as having attained 75 points (age plus years of service) with at least 15 years of service, having attained age 65 and 5 years of service or having attained age 55 and 10 years of service. If the named executive officer is not retirement eligible upon termination and has not reached plan maturity (age 60 and 5 years of plan participation) upon termination, the executive would be eligible to receive one additional annual cash payment to defray a portion of the annual premiums for the two years following the year in which the executive’s termination occurs. If the named executive officer is retirement eligible upon termination and has achieved plan maturity upon his or her termination, the executive would not be entitled to any additional cash payment from Verizon.
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Estimated payments. The following table shows Verizon’s estimate of the amount of benefits the named executive officers would have been entitled to receive had their employment been involuntarily terminated without cause on the last business day of 2023 or had they incurred a qualifying separation under the Senior Manager Severance Plan.
Name | Cash separation payment ($) |
Continued health
benefits1 ($) |
Outplacement services ($) |
Financial planning ($) |
Executive life insurance benefit2 ($) | |||||
Mr. Vestberg | 0 | 0 | 0 | 0 | 0 | |||||
Mr. Skiadas | 4,000,000 | 64,871 | 40,000 | 11,000 | 224,572 | |||||
Mr. Sampath | 5,250,000 | 60,797 | 40,000 | 13,000 | 29,030 | |||||
Mr. Malady | 5,000,000 | 64,871 | 40,000 | 13,000 | 147,760 | |||||
Mr. Silliman | 4,500,000 | 60,797 | 40,000 | 13,000 | 102,646 |
1 | The amounts reflect Verizon’s estimated cost of providing medical, dental and vision coverage for two years. | |
2 | The amount for Mr. Sampath, who is not retirement eligible, reflects one additional annual cash payment to defray a portion of the annual premium for the two years following the year in which his termination occurs. The amounts for Messrs. Skiadas, Malady and Silliman, who are retirement eligible, reflects the value of the future annual cash payments from Verizon used to defray a portion of the annual premiums until their attainment of age 60. |
Under the terms of the executive life insurance plan, in the event of disability or a qualifying retirement, a named executive officer who continues to pay the annual premiums on the life insurance policy owned by the executive would be eligible to receive an annual payment from Verizon to defray a portion of the annual premium until the latest of the executive’s attainment of age 60 or the completion of 5 years of plan participation. If the named executive officer dies, his or her beneficiary would be entitled to receive the proceeds of the life insurance policy owned by the executive, payable by the third-party issuer of the policy.
Under the Short-Term Plan, if the named executive officer’s employment terminates due to death, disability or a qualifying retirement prior to the last day of the year, the executive would be eligible for a prorated Short-Term Plan award for the year in which the termination date occurred, determined based on the actual level of achievement of the performance criteria under the Short-Term Plan for the applicable year and payable at the time that awards are generally payable to participating employees under the plan. As described above, if the executive’s employment terminates on the last day of the year for any reason other than for cause, the full amount of the Short-Term Plan award, determined based on the actual level of achievement of the performance criteria under the Short-Term Plan for the applicable year, would have been payable.
In addition, upon death, disability or a qualifying retirement, each named executive officer would also be eligible to receive financial planning services for one year following termination on the same basis as provided to other senior executives, provided that the executive participated in the program in the year in which his or her employment terminates. Upon disability, the named executive officers would also be eligible for disability benefits under the tax-qualified and nonqualified disability plans.
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Estimated payments. The following table shows Verizon’s estimate of the amount of benefits the named executive officers would have been entitled to receive had their employment terminated due to death, disability or qualifying retirement on the last business day of 2023.
Name | Executive life insurance benefit1 ($) |
Disability benefit2 ($) |
Financial planning ($) | |||
Mr. Vestberg | ||||||
Death | 10,000,000 | 0 | 21,300 | |||
Disability | 253,103 | 1,469,888 | 21,300 | |||
Retirement3 | 0 | 0 | 0 | |||
Mr. Skiadas | ||||||
Death | 8,000,000 | 0 | 11,000 | |||
Disability | 224,572 | 1,500,780 | 11,000 | |||
Retirement | 224,572 | 0 | 11,000 | |||
Mr. Sampath | ||||||
Death | 8,000,000 | 0 | 13,000 | |||
Disability | 380,358 | 1,796,346 | 13,000 | |||
Retirement3 | 0 | 0 | 0 | |||
Mr. Malady | ||||||
Death | 3,826,000 | 0 | 13,000 | |||
Disability | 147,760 | 1,389,674 | 13,000 | |||
Retirement | 147,760 | 0 | 13,000 | |||
Mr. Silliman | ||||||
Death | 3,826,000 | 0 | 13,000 | |||
Disability | 102,646 | 1,417,514 | 13,000 | |||
Retirement | 102,646 | 0 | 13,000 |
1 | In the event of death, the amount represents the proceeds from the life insurance policy owned by the named executive officer, payable by the third-party issuer of the policy. In the event of disability or retirement, the amount, if any, represents the total amount of annual cash payments to the named executive officer to defray a portion of the annual premium of the life insurance policy owned by him or her, provided that the named executive officer continues to pay the annual premiums pursuant to the terms of the executive life insurance program. | |
2 | Assumes that each named executive officer would be immediately eligible for long-term disability benefits from Verizon’s qualified and nonqualified disability benefit plans. The assumptions used to calculate the value of the disability benefits include a discount rate of 5.12% and mortality and recovery based on the 2012 Group Long-Term Disability Valuation Table. These rates represent the probability of death or recovery between the date of disability and the payment end date. The qualified portion of the disability benefit for Messrs. Vestberg, Skiadas, Sampath, Malady and Silliman, is estimated at $769,980, $615,099, $735,336, $569,765 and $581,180, respectively, and the nonqualified portion of the disability benefit for Messrs. Vestberg, Skiadas, Sampath, Malady and Silliman, is estimated at $699,908, $885,681, $1,061,010, $819,909 and $836,334, respectively. In order to receive the nonqualified portion of the disability benefit, the executive must pay the premium associated with the qualified portion of the benefit. | |
3 | Messrs. Vestberg and Sampath would not have been entitled to receive executive life insurance benefits or financial planning benefits because they had not fulfilled the eligibility requirements for retirement under the terms of those programs on the last business day of 2023. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Verizon does not maintain any plans or arrangements that provide for any named executive officer to receive cash severance or any other cash payments in connection with a change in control of Verizon. If the named executive officer’s employment terminates in connection with or following a change in control, he or she would be eligible for the same benefits, if any, that would become payable to the executive upon his or her termination under the circumstances as described above. Under the Short-Term Plan, if a change in control occurs, all outstanding awards will vest and become payable on the regularly scheduled payment date.
As is the case for all participants under the terms of the Long-Term Plan and the applicable award agreements, upon death, disability or qualifying retirement, each named executive officer’s then unvested RSUs will vest and be payable on the regularly scheduled payment dates and each named executive officer’s then unvested PSUs will vest and be payable on the regularly scheduled payment date after the end of the applicable award cycle, but only if and to the extent that the applicable performance criteria for the award are achieved at the end of the applicable award cycle. A qualifying retirement for purposes of the Long-Term Plan generally means to retire after having attained at least 15 years of vesting service (as defined under the applicable Verizon tax-qualified savings plan) and a combination of age and years of vesting service that equals or exceeds 75, 65 years of age and 5 years of vesting service, or starting with the 2022 awards, 55 years of age and 10 years of vesting service. Commencing with the 2022 awards, participants, including named executive officers, who voluntarily retire having attained age 55 and 5 years of service but do not meet the eligibility requirements for a qualifying retirement (referred to as an early retirement) will vest in a prorated portion of the number of RSUs and PSUs awarded (and accrued dividends) based on the number of days worked during the performance period, and the remainder of the RSUs and PSUs will be forfeited. Any such prorated portion of the PSUs (and accrued dividends) will be payable only if and to the extent that the applicable performance criteria for the award are achieved at the end of the applicable award cycle, and will be payable on the regularly scheduled payment date after the end of the applicable award cycle. As of December 31, 2023, Messrs. Skiadas, Malady and Silliman were eligible for a qualifying retirement under the Long-Term Plan, Mr. Vestberg was eligible for early retirement vesting under the terms of his 2022 and 2023 PSU and RSU awards, and Mr. Sampath was not eligible for a qualifying retirement or early retirement under the Long-Term Plan.
If a named executive officer’s employment is involuntarily terminated by the Company without cause, the named executive officer’s then unvested RSUs and PSUs will vest only as to a prorated portion of the number of RSUs and PSUs awarded (and accrued dividends) based on the number of days worked during the performance period, and the remainder of the RSUs and PSUs will be forfeited. Any such prorated portion of the PSUs (and accrued dividends) will be payable only if and to the extent that the applicable performance criteria for the award are achieved at the end of the applicable award cycle, and will be payable on the regularly scheduled payment date after the end of the applicable award cycle. With respect to the 2022 special retention RSU award to Mr. Silliman, if the named executive officer’s employment is involuntarily terminated by the Company without cause, Mr. Silliman’s then unvested RSUs will vest and be payable on the regularly scheduled payment date.
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
The payment of PSU and RSU awards under the Long-Term Plan following an involuntary termination of employment without cause, death, disability or qualifying or early retirement is conditioned on the participant executing a release of claims against Verizon in the form satisfactory to Verizon. The grant of each award is conditioned on the participant’s agreement to certain restrictive covenants including an agreement not to compete or interfere with any Verizon business for a period of one year after termination from employment (two years for the CEO), and to always protect Verizon’s trade secrets and proprietary information.
In addition, under the terms of the Long-Term Plan and the applicable award agreements, if, in the 12 months following a change in control of Verizon, a participant’s employment is involuntarily terminated without cause, all then-unvested RSUs will vest and be payable on the regularly scheduled payment dates and all then-unvested PSUs will vest at target level performance and be payable on the regularly scheduled payment date after the end of the applicable award cycle.
Under the Long-Term Plan, a change in control of Verizon is generally defined as the occurrence of any of the following:
• | Any person becomes a beneficial owner of shares representing twenty percent or more of Verizon’s outstanding voting stock; | |
• | Verizon consummates a merger, consolidation, reorganization or any other business combination; or | |
• | The Board adopts resolutions authorizing the liquidation or dissolution, or sale of all or substantially all of the assets, of Verizon. |
However, a change in control will not occur if:
• | The amount of Verizon voting stock outstanding immediately before the transaction represents at least forty-five percent of the combined voting power of the corporation that survives the transaction; | |
• | Verizon Directors constitute at least one-half of the board of directors of the surviving corporation; | |
• | Verizon’s CEO is the CEO of the surviving corporation; and | |
• | The headquarters of the surviving corporation is located in New York, New York. |
Estimated payments. The following table shows the estimated value of the awards that the named executive officers could have received in respect of their outstanding unvested equity awards if any of the following events occurred on the last business day of 2023: (i) a change in control of Verizon without a termination of employment; (ii) a change in control of Verizon and an involuntary termination of employment without cause within 12 months; (iii) a termination of employment as a result of an involuntary termination without cause (other than in connection with a change in control); (iv) a qualifying retirement; or (v) death or disability. The occurrence of the foregoing events, other than a change in control of Verizon without a termination of employment, would trigger accelerated vesting of all or a prorated portion of the awards. The amounts represent the estimated value of the outstanding RSU and PSU awards granted in 2021, 2022 and 2023, and the 2022 special retention RSU award granted to Mr. Silliman, calculated using the total number of units (including accrued dividends) on the last business day of 2023 and $37.70, Verizon’s closing stock price on that date, and for the PSUs, assuming the award would vest at target performance levels. The actual amount payable under these awards can be determined only at the time the awards would be paid.
Name | Change in control without termination ($) |
Change in control and termination without cause ($) |
Termination without cause1 ($) |
Retirement2 ($) | Death or disability ($) | |||||
Mr. Vestberg | 0 | 30,174,025 | 13,030,303 | 11,741,579 | 30,174,025 | |||||
Mr. Skiadas | 0 | 8,871,076 | 8,871,076 | 8,871,076 | 8,871,076 | |||||
Mr. Sampath | 0 | 13,985,872 | 5,855,204 | 0 | 13,985,872 | |||||
Mr. Malady | 0 | 13,321,371 | 13,321,371 | 13,321,371 | 13,321,371 | |||||
Mr. Silliman | 0 | 12,877,302 | 12,877,302 | 12,091,144 | 12,877,302 |
1 | For Messrs. Vestberg and Sampath, the amounts in this column reflect a prorated portion of their outstanding 2022 and 2023 PSU awards and 2021, 2022 and 2023 RSU awards based on the number of days worked from the applicable grant date through the assumed termination date on the last business day of 2023. The amounts in this column for Messrs. Skiadas, Malady and Silliman, reflect the vesting of their outstanding PSU and RSU awards because they had attained eligibility for a qualifying retirement as of December 31, 2023. | |
2 | Mr. Sampath would not have been entitled to receive any amount in respect of his outstanding unvested equity awards upon retirement because he had not met the eligibility requirements for retirement or early retirement under the terms of the Long-Term Plan on the last business day of 2023. Messrs. Skiadas, Malady and Silliman had attained eligibility for a qualifying retirement as of December 31, 2023 for purposes of their outstanding PSUs and RSUs (other than the 2022 special retention RSU award to Mr. Silliman which does not provide for vesting upon retirement). Mr. Vestberg had attained eligibility for early retirement only with respect to his 2022 and 2023 PSU and RSU awards which would provide him with a prorated portion of the 2022 and 2023 PSU and RSU awards if he had voluntarily separated from the company on December 31, 2023. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
In connection with Mr. Ellis’s involuntary separation from service from the Company without cause on April 29, 2023, he became entitled to separation benefits under the terms and conditions of the Senior Manager Severance Plan. The following table sets forth the estimated payments and benefits Mr. Ellis became entitled to receive upon his separation from Verizon.
Name | Cash separation payment ($) |
Continued health benefits1 ($) |
Equity2 ($) | 2023 Short-Term Plan award ($) |
Financial planning ($) |
Executive life |
Outplacement services ($) | |||||||
Mr. Ellis | 4,750,000 | 60,797 | 2,659,242 | 517,750 | 13,000 | 18,232 | 14,500 |
1 | Represents Verizon’s estimated cost of providing medical, dental and vision coverage for two years. | |
2 | Represents the value upon vesting of Mr. Ellis’s 2021 annual PSU award, the estimated value of his 2021 annual RSU award and the estimated value of his outstanding 2022 and 2023 annual RSU and PSU awards. Mr. Ellis’s awards were prorated since he had not attained retirement eligibility for purposes of his outstanding Long-Term Plan awards on his separation date. For the 2021 PSU award, the value represents the number of shares acquired on vesting of his 2021 annual PSU award multiplied by $37.70, the closing price of Verizon’s common stock on December 29, 2023, as reported in the Option Exercises and Stock Vested table on page 45. The value of the 2021 RSU award and the 2022 and 2023 RSU and PSU awards were calculated using the total number of units (including accrued dividends) on the last business day of 2023 and $37.70, Verizon’s closing stock price on that date, and, in the case of the PSUs, assuming the awards would vest at target performance. These awards will be paid on the regularly scheduled payment date following the applicable vesting date based on the stock price on the applicable vesting date, and in the case of the PSUs only if and to the extent that the applicable performance criteria have been satisfied. | |
3 | Represents one additional payment to defray a portion of the annual premium for one year following Mr. Ellis’s separation from Verizon under the life insurance policy owned by him. |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between executive compensation and certain financial performance of the Company. For further information concerning Verizon’s variable pay-for-performance philosophy and how Verizon aligns executive compensation with the Company’s performance, refer to the Compensation Discussion and Analysis beginning on page 23.
Average Summary Compensation | Average | Value of initial fixed $100 investment based on: | ||||||||||||||
Year (a) | Summary Compensation table total for CEO1 ($) (b) | Compensation Actually Paid to CEO2 ($) (c) | table total for non-CEO named executive officers3 ($) (d) | Compensation Actually Paid to non-CEO named executive officers4 ($) (e) | Total shareholder return5 ($) (f) | Peer group total shareholder return6 ($) (g) | Net income7 ($ in millions) (h) | Company Selected Measure: Adjusted EPS8 ($) (i) | ||||||||
2023 | ||||||||||||||||
2022 | ||||||||||||||||
2021 | ||||||||||||||||
2020 |
1 | The amounts in this column are the amounts of total compensation
reported for |
2 | The amounts in this column represent the amount of “Compensation Actually Paid” to Mr. Vestberg, as computed in accordance with Item 402(v) of Regulation S-K. The amounts do not reflect the actual amount of compensation earned by or paid to Mr. Vestberg during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Mr. Vestberg’s total compensation for each year to determine the “Compensation Actually Paid”: |
Year | Reported Summary Compensation table total for CEO ($) | Reported value of equity awardsa ($) | Equity award adjustmentsb ($) | Reported change in the actuarial present value of pension benefitsc ($) | Pension benefit adjustments ($) | Compensation Actually Paid to CEO ($) | ||||||
2023 | ||||||||||||
2022 | ||||||||||||
2021 | ||||||||||||
2020 |
a | |
b |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
Year | Year end fair value of equity awards granted in the year and outstanding and unvested as of the end of the year ($) | Change in fair value of equity awards granted in prior years and outstanding and unvested as of the end of the year ($) | Fair value as of vesting date of equity awards granted and vested in the year ($) | Change in fair value of equity awards granted in prior years that vested in the year ($) | Fair value at the end of the prior year of equity awards that failed to meet vesting conditions in the year ($) | Value of dividends or other earnings paid on stock or option awards not otherwise reflected in fair value or total compensation ($) | Total equity award adjustments ($) | |||||||
2023 | ( | ( | ||||||||||||
2022 | ( | ( | ||||||||||||
2021 | ( | ( | ||||||||||||
2020 | ( |
c | The amounts included in this column are the amounts reported in “Change in pension and nonqualified deferred compensation” column of the Summary Compensation table for each applicable year. Mr. Vestberg is not eligible for pension benefits. |
3 | The amounts in this column represent the average of the amounts reported for the Company’s named executive officers as a group (excluding Mr. Vestberg, who has served as our CEO since 2018) in the “Total” column of the Summary Compensation table in each applicable year. The names of each of the named executive officers (excluding Mr. Vestberg) included for purposes of calculating the average amounts in each applicable year are as follows: (i) for 2023, Messrs. Skiadas, Sampath, Malady, Silliman, and Ellis, (ii) for 2022, Messrs. Ellis, Malady, Sampath and Silliman, and Tami Erwin and Manon Brouillette; (iii) for 2021, Messrs. Ellis and Malady, Ronan Dunne and K. Guru Gowrappan, and Ms. Erwin; and (iv) for 2020, Messrs. Ellis, Dunne and Gowrappan, and Ms. Erwin. |
4 | The amounts in this column represent the average amount of “Compensation Actually Paid” to the named executive officers as a group (excluding Mr. Vestberg), as computed in accordance with Item 402(v) of Regulation S-K. The amounts do not reflect the actual average amount of compensation earned by or paid to the named executive officers as a group (excluding Mr. Vestberg) during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to average total compensation for the named executive officers as a group (excluding Mr. Vestberg) for each year to determine the “Compensation Actually Paid”, using the same methodology described above in Note 2: |
Year | Average reported Summary Compensation table total for non-CEO named executive officers ($) | Average reported value of equity awards ($) | Average equity award adjustmentsa ($) | Average reported change in the actuarial present value of pension benefits ($) | Average pension benefit adjustments ($) | Average Compensation Actually Paid to non-CEO named executive officers ($) | ||||||
2023 | ||||||||||||
2022 | ||||||||||||
2021 | ||||||||||||
2020 |
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Proxy summary | Governance | Executive compensation | Audit matters | Stock ownership | Shareholder proposals | Additional information |
a | The amounts deducted or added in calculating the total average equity award adjustments are as follows: |
Year | Average year end fair value of equity awards granted in the year and outstanding and unvested as of the end of the year ($) | Average change in fair value of equity awards granted in prior years and outstanding and unvested as of the end of the year ($) | Average fair value as of vesting date of equity awards granted and vested in the year ($) | Average change in fair value of equity awards granted in prior years that vested in the year ($) | Average fair value at the end of the prior year of equity awards that failed to meet vesting conditions in the year ($) | Average value of dividends or other earnings paid on stock or option awards not otherwise reflected in fair value or total compensation ($) | Total average equity award adjustments ($) | |||||||
2023 | ( | ( | ( | |||||||||||
2022 | ( | ( | ||||||||||||
2021 | ( | ( | ( | |||||||||||
2020 | ( |