Shareholder Forum for Verizon Communications, Inc.

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Program Reference

Forum Summary

Verizon Communications, Inc.

June 15, 2007

A “Forum” program is being initiated for shareholders of Verizon Communications Inc. (NYSE:VZ) to examine the relationship of executive compensation incentives to the company’s achievement of long term enterprise objectives, as a foundation for considering investor decisions about both capital commitment and voting.

Verizon was selected as a Forum subject based primarily on its apparent value enhancement opportunity.  Since the company’s stock has not performed as well as that of its rivals in spite of Verizon’s competitively superior operational performance, it is assumed that a significant portion of the comparatively lower valuation may be attributable to investment risk discount associated with widely reported analyst concerns about the company’s strategies.  The Forum’s objective, based on principles of shared investor and management interests defined in its recent “Options Policies” program, is therefore to facilitate an exchange of information that provides investors with a better understanding of the enterprise goals on which the company’s key executives, as well-informed and highly credible decision-makers, have staked their financial and career success.

The Forum program will start with an informal “workshop,” inviting Verizon management, shareholders, securities analysts and other professionals to develop consensus recommendations of (a) what investors should be considering in their decisions and (b) what information can reasonably be made available for required research and analysis.  Based on the directions established by the workshop, the Forum will present relevant information publicly to all participants and provide opportunities for open exchanges of views at one or more steps.  A final report of the program’s conclusions will include any comments offered by Verizon management.

The Forum will be open, free of charge, to all Verizon shareholders, whether institutional or individual, and to any fiduciaries or professionals concerned with their investment decisions, including members of the New York Society of Security Analysts.  As stated in the “Conditions of Participation” which are publicly posted on the Forum web site, the Forum will be conducted for the purpose of providing shareholders with access to information and a free exchange of views on issues relating to their evaluations of alternatives.  Participants are expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

This Forum program has been organized with the support of the Association of BellTel Retirees Inc., believed to be the world’s largest such organization with over 110,000 members who are retired employees of Verizon and its predecessor companies.[*]


[*] The President of the retiree Association, a former strategic development and planning executive of Verizon, had been a member of the previous Forum program’s Advisory Panel which defined principles of shared management and investor interests concerning compensation policies that are a foundation for the current program.

 

 April 2, 2008 Forum Report

Results of March 27, 2008 Open Meeting

 

Summary of conclusions and plans for information requests to be submitted to Verizon, from the Forum meeting hosted by the New York Society of Security Analysts for "Finding Out How Verizon Executives Are Placing Their Bets."

 

 

 

News Reports

 

Forum Issues

 

Financial Times

June 27, 2008

"Leader defends group’s shareholder return record"

and

"New king of the US wireless jungle says he is hunter, not prey"

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Associated Press

March 17, 2008

"Verizon CEO's pay inches up to $20.3M"

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TheCorporateCounsel.net

November 5, 2007

"Verizon's Say on Pay: A Take-Away"

See also

TheCorporateCounsel.net

November 29, 2007

"SEC Adopts Rules to Facilitate Shareholder E-Forums"

♦♦♦

New York Times

November 2, 2007

"Verizon to Put Executive Pay to Shareholder Vote"

See also

Agenda

November 12, 2007

"U.K. Investors Warn U.S. About Say on Pay"

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Investor Relations Magazine

September 13, 2007

(September 17 update)

"Interest grows in independent shareholder forums"

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New York Times

June 17, 2007

"Hear Ye, Hear Ye: Corralling Executive Pay"

See also

Crain's New York Business

June 25, 2007

"Executive Pay Report | Slow start for say-on-pay push; Few shareholder proposals prevail; bull market to blame"

 

Differing Analyst Views

 

Wall Street Journal

August 11, 2009

"The Two Sides of Verizon's Deal Making"

♦♦♦

Wall Street Journal

May 21, 2009

"The High Wireless Act at Verizon"

See also

Wall Street Journal

April 28, 2009

"For Verizon, Land Lines Are a Hang-Up"

♦♦♦

Wall Street Journal

January 28, 2009

"AT&T, Verizon Make Different Calls"

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New York Times

August 19, 2008

"A Smart Bet or a Big Mistake?"

♦♦♦

BusinessWeek

July 28, 2008

"Verizon Suffers from Wall Street's Woes"

"The telecom giant reports strong profits, but concerns over the economy and landline subscriber losses hurt its stock"

♦♦♦

Wall Street Journal

January 4, 2008

"Fiber-Optic Battle Lines"

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Columbia Journalism Review

November 27, 2007

"Earnings: Eye of the Beholder? Verizon coverage shows corporate earnings are still a trap for business reporters."

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Wall Street Journal

October 24, 2007

"Verizon's FiOS Challenges Cable's Clout"

♦♦♦

New York Times

October 3, 2007

"Unlike U.S., Japanese Push Fiber Over Profit"

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USA Today

September 23, 2007

"Investors can cash in as demand for fiber optics takes off"

♦♦♦

Wall Street Journal

November 2, 2006

"Making Calls on Verizon"

 

 

 

 

 

 

 

 

 

 

This Forum program is open, free of charge, to all Verizon Communications, Inc. ("VZ") shareholders and to any fiduciaries or professionals concerned with their investment decisions.  Its purpose is to provide shareholders with access to information and a free exchange of views on issues relating to their evaluations of alternatives, addressing issues described in the Forum Summary.

As stated in the posted Conditions of Participation, all Forum participants are expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

The Verizon Forum program has been organized with the support of the Association of BellTel Retirees Inc., believed to be the world’s largest such organization with over 110,000 members who are retired employees of Verizon and its predecessor companies.

Inquiries and requests to be included in the Forum's distribution list may be addressed to vz@shareholderforum.com.  The information provided to Forum participants is intended for their private reference, and permission has not been granted for the republishing of any copyrighted material.

All material on this web site is published by Gary Lutin, who is responsible for conducting the Forum.