8-KLeadership Changes

VERIZON COMMUNICATIONS INC 8-K Report, Executive Changes (Mar 7, 2018)

Filed March 7, 2018For Securities:VZ

Summary

This 8-K filing from Verizon Communications Inc. (VZ) on March 7, 2018, details a significant change in the compensation structure for its senior executive officers. Specifically, the Human Resources Committee of the Board of Directors has approved a revised methodology for determining annual long-term incentive (LTI) awards. Beginning in 2018, the target LTI opportunity for most senior executives will be set within a range of 400% to 600% of their base salary, allowing for greater flexibility and consideration of various performance and market factors. This move signals a potential increase in the equity-based compensation for key leadership positions, aiming to align their incentives more closely with company performance and strategic objectives.

Key Highlights

  • 1Verizon's Human Resources Committee approved a new methodology for senior executive long-term incentive (LTI) awards, effective 2018.
  • 2Target LTI opportunities for senior executives (excluding the CEO) will now range from 400% to 600% of base salary.
  • 3This change aims to provide flexibility in setting LTI awards, considering market practices, individual performance, strategic impact, and internal pay alignment.
  • 4For 2018, the approved target LTI opportunities for Matthew D. Ellis (CFO), John G. Stratton, Hans E. Vestberg, and Marc C. Reed were all set at 600% of base salary.
  • 5The LTI targets for these executives represent an increase from their previous award percentages (e.g., Ellis and Vestberg were at 500%).
  • 6The filing indicates a strategic shift towards potentially higher equity-based compensation for senior leadership to drive performance.

Frequently Asked Questions

The main change is the adoption of a new methodology for determining the annual long-term incentive (LTI) award opportunities for Verizon's senior executive officers, effective from 2018. The target LTI opportunity range for these officers (excluding the CEO) has been set between 400% and 600% of their base salary.

The change allows the Human Resources Committee more flexibility to set LTI awards based on various factors such as prevailing market practices for similar roles, individual performance, the strategic importance of an executive's position, and internal pay equity. This suggests a move to better align executive compensation with company goals and market competitiveness.

Yes, for the 2018 fiscal year, the target LTI opportunities for Matthew D. Ellis (CFO), John G. Stratton, Hans E. Vestberg, and Marc C. Reed were all approved at the maximum of the new range, which is 600% of their base salary. This represents an increase from their previous LTI award percentages.

The filing explicitly states that the new LTI range of 400% to 600% of base salary applies to senior executive officers 'other than the Chief Executive Officer.' Therefore, this specific change in methodology does not directly apply to the CEO's LTI target opportunity as described in this filing.