09.23.2003|Corporate

Verizon Adopts New Severance Agreement Policy In Response to Shareholder Vote

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NEW YORK - Verizon Communications (NYSE:VZ) today announced a new policy that requires shareholder approval of any new agreements with senior executives that provide for cash severance payments in excess of 2.99 times the sum of the executive's salary plus annual short-term bonus. The new policy is effective immediately.

The Human Resources Committee of Verizon's Board of Directors developed the policy in a process that began following Verizon's annual meeting in April. At the meeting, shareholders approved an advisory shareowner proposal relating to new severance agreements with senior executives. The resolution was submitted by the Association of BellTel Retirees and association member Robert Rehm. In making its determination, the committee considered a variety of factors including the fact that the existing agreements were entered into in connection with a merger of equals, and the results of the recent shareholder vote.

The new policy applies to agreements that provide for cash severance payments in connection with a change in control or other termination of senior executives.

Verizon Communications

A Fortune 10 company, Verizon Communications (NYSE:VZ) is one of the world's leading providers of communications services, with approximately $67 billion in revenues and 221,000 employees. Verizon companies are the largest providers of wireline and wireless communications in the United States, with 137.6 million access line equivalents and 34.6 million Verizon Wireless customers. Verizon is the third largest long-distance carrier for U.S. consumers, with 14.6 million long-distance lines. The company is also the largest directory publisher in the world, as measured by directory titles and circulation. Verizon's international presence includes wireline and wireless communications operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.

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