AFL-CIO targets Verizon chief's pay

The AFL-CIO, a major shareholder in public companies, is targeting Verizon Communications Inc. this year for a shakeup of its board as it accuses the company's chief executive of collecting exorbitant pay for poor performance.

The labor federation scored successes last year with agitation at Home Depot Inc. and Pfizer Inc., whose CEOs departed in a storm of investor anger over executive pay. AFL-CIO officials today said they have chosen Verizon chief executive Ivan Seidenberg as their "poster boy" for 2007.

"I defy anybody to say this guy has earned the money," said Richard Trumka, AFL-CIO secretary-treasurer.

Seidenberg received $109 million over the past five years -- at the same time, Trumka said, that Verizon shareholders got a negative half-percent return on their investments.

At Verizon's annual meeting May 3, the labor federation will ask shareholders to remove directors who approved Seidenberg's compensation and will push for investors to have a formal say in executive pay and "golden parachute" severance packages, Trumka said.

"Verizon is among the most transparent companies regarding senior executive compensation, and in fact our CEO works without a severance agreement," company spokesman Peter Thonis said. "Furthermore, approximately 89 percent of our CEO's compensation is performance based and therefore at risk."

Seidenberg received compensation valued at $20.2 million last year, including $2.1 million in salary, $13.1 million worth of stock awards, and perks worth $734,400.

Verizon's stock rebounded strongly last year after a dismal performance in 2005. Shares of the second-largest U.S. telecommunications company rose 24 percent in 2006.

Pension funds of the 54 labor unions that comprise the AFL-CIO have a combined $400 billion in assets.
(AP)