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By Che Odom
March 22 — A CEO severance package at Verizon Communications Inc. is coming under fire by the company's retirees.
Jack Cohen, chairman of the 134,000-member Association of BellTel Retirees Inc., has submitted a shareholder proposal that would require stockholder approval of any new or renewed package exceeding three times an executive's base pay, plus short-term bonus.
Verizon's board has recommended that shareholders vote against the proposal at the company's May 5 annual meeting in Albuquerque, N.M.
Attempts to reach the company for comment March 22 were not immediately successful.
BellTel said in a March 21 release that Verizon has made use of “an accounting gymnastics loophole” in CEO Lowell McAdam's compensation plan.
Under current compensation guidelines, if McAdam is terminated without cause, “he can receive nearly seven times his base salary plus short-term bonus,” BellTel said.
Based upon Verizon's 2015 proxy statement disclosures, McAdam could receive an estimated $37.2 million in termination payments, the association said.
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BellTel's release is available at http://belltelretirees.org/newsletter-belltel-retiree/.
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