8-KMaterial Agreements

VERIZON COMMUNICATIONS INC 8-K Report, Material Agreement (Jan 21, 2005)

Filed January 21, 2005For Securities:VZ

Summary

This Form 8-K filing from Verizon Communications Inc. (VZ), dated January 19, 2005, details the approval of short-term incentive awards for named executive officers for the 2004 performance year and a salary increase for CEO Ivan Seidenberg. The incentive awards were determined based on Verizon's financial performance, including earnings per share and revenue, as well as customer service and diversity objectives. Key executive compensation adjustments include awards ranging from approximately $1 million to over $3.3 million for top executives, with CEO Ivan Seidenberg receiving the largest award. Additionally, Mr. Seidenberg's base salary was increased to $2,100,000, effective January 1, 2005, marking his first salary increase since June 2000 and reflecting his individual performance and market conditions. These decisions by the Human Resources Committee and independent directors underscore the company's focus on aligning executive compensation with performance and competitive market rates.

Key Highlights

  • 1Verizon's Human Resources Committee approved 2004 short-term incentive awards for named executive officers on January 19, 2005.
  • 2Awards were based on Verizon's 2004 performance against pre-established financial objectives (earnings per share, revenue excluding pension/post-retirement benefits) and customer service/diversity goals.
  • 3CEO Ivan Seidenberg received the largest short-term incentive award of $3,375,000.
  • 4Other named executive officers received awards ranging from $1,012,500 (CFO Doreen A. Toben) to $1,862,000 (EVP & CEO Verizon Wireless Joint Venture Dennis F. Strigl).
  • 5The independent directors approved an increase in CEO Ivan Seidenberg's base salary to $2,100,000, effective January 1, 2005.
  • 6This salary increase for Mr. Seidenberg is his first since June 2000 and was based on his performance, market value of his position, and economic conditions.
  • 7Verizon intends to continue using these performance measures and criteria for determining short-term incentive awards for 2005 and onward.

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