Verizon activists: CEO shouldn't be chair too

[Omaha Steve]

http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20080430/FREE/991524708/1065

With Verizon's annual stockholders meeting starting Thursday, an influential group of former employees is demanding that the board appoint a chairman from its independent directors.
April 30. 2008 1:07PMBy: Aaron Elstein

An influential group of former Verizon Communications Inc. employees is seeking to strip Chief Executive Ivan Seidenberg of his position as chairman of the board.

The Association of BellTel Retirees in sponsoring a resolution, to be voted on at the telecommunications giant’s annual stockholders meeting on Thursday, which will require the board to appoint a chairman from its ranks of independent directors.

The retirees’ group argues that separating the chairman and CEO jobs will make it easier for the board to evaluate the CEO’s performance and better protect the interests of shareholders. The group notes that Mr. Seidenberg received about $69 million in compensation during a five-year period ending in 2006 while Verizon’s stock fell 5% over that time.

“How can the CEO be his own boss?” the retirees ask in their proposal.

Led by Bill Jones, a 68-year-old former managing director at Nynex, the BellTel retirees have proven to be one of the most successful activist shareholder groups. Last year, the group won a majority vote for a resolution demanding that investors get a greater say in how Verizon pays its top executives. Verizon will hold a “say on pay” vote at its annual meeting next spring.

FULL story at link.

[tularetom]

1. Ya think?

The whole matter of interlocking directorates is something that should bother every investor, every person with and IRA or 401(k).

It's awfully incestuous.