8-K/ALeadership Changes

VERIZON COMMUNICATIONS INC 8-K/A Report, Executive Changes (Nov 10, 2010)

Filed November 10, 2010For Securities:VZ

Summary

This 8-K filing is an amendment to a previous report concerning executive appointments at Verizon Communications Inc. The amendment primarily details adjustments to the compensation packages for Lowell C. McAdam, newly appointed President and Chief Operating Officer, and Francis J. Shammo, appointed Executive Vice President and Chief Financial Officer. These adjustments reflect the increased responsibilities associated with their new roles and are effective as of November 1, 2010. For investors, the key takeaway is the significant increase in compensation for Mr. McAdam, including a substantial rise in base salary and enhanced incentive opportunities. Mr. Shammo also received a base salary increase, though his incentive opportunities remained unchanged. These changes signal the company's commitment to retaining and motivating key leadership talent during a period of executive transition.

Key Highlights

  • 1Amendment to a previous 8-K filing dated September 20, 2010.
  • 2Details compensation adjustments for Lowell C. McAdam upon his appointment as President and Chief Operating Officer.
  • 3Mr. McAdam's base salary increased from $825,000 to $1,400,000.
  • 4Mr. McAdam's target short-term incentive opportunity increased from 112.5% to 187.5% of base salary.
  • 5Mr. McAdam's target long-term incentive opportunity increased from 525% to 625% of base salary.
  • 6Details a base salary increase for Francis J. Shammo upon his appointment as Executive Vice President and Chief Financial Officer.
  • 7Mr. Shammo's base salary increased from $600,000 to $675,000; his incentive opportunities remained unchanged.

Frequently Asked Questions

The main purpose of this 8-K amendment is to provide updated information regarding the compensation packages for two key executives, Lowell C. McAdam and Francis J. Shammo, following their appointments to new roles.

Mr. McAdam's compensation saw a substantial increase. His base salary nearly doubled, rising from $825,000 to $1,400,000. Additionally, his target short-term incentive opportunity increased to 187.5% of base salary (from 112.5%), and his target long-term incentive opportunity rose to 625% of base salary (from 525%).

Mr. Shammo received a base salary increase from $600,000 to $675,000. However, unlike Mr. McAdam, his target short-term and long-term incentive opportunities as a percentage of base salary remained the same.

These compensation changes for both Mr. McAdam and Mr. Shammo are effective as of November 1, 2010.