Despite a down year financially, Verizon Communications’ executive compensation packages increased in 2014.
According to a proxy filing, Verizon CEO Lowell McAdam pocketed $18.3 million in total compensation last year, including $12 million in stock options on top of his $1.5 million base salary. That was a nearly 16% increase in total compensation compared with 2013.
CFO Fran Shammo picked up just under $6.5 million in total compensation, which was a 9% year-over-year increase, including $815,385 in salary and $4.3 million in stock options.
Dan Mead, who until recently headed up Verizon Wireless before taking a new position as EVP and president of strategic initiatives at the parent company, pocketed $7.7 million in total compensation, including a $940,385 base salary and just under $5 million in stock options. That total was a 7% increase compared with 2013 compensation.
John Stratton, who is taking Mead’s place at Verizon Wireless, but spent 2014 as EVP and president of operations, accrued $6.3 million in total compensation, including $785,577 in base salary and $4.2 million in stock options. EVP Randal Milch was compensated to the tune of $5.6 million, including $714,423 in base pay and $3.6 million in stock options.
Verizon reported $12 billion in net income for 2014, which was down more than 49% compared with the previous year, with most of that impact felt through non-operating charges. Verizon earlier this year announced a number of asset moves designed to bolster its financial position, including selling off wireline and tower assets in deals expected to generate more than $15 billion.
Verizon said its executive compensation program is targeted at the median of its peer group, and includes 10% of total pay tied to base salaries, with the remainder tied to short-term and long-term incentives. In addition, the program does not include guaranteed pensions or supplemental retirement benefits, executive employment agreements or cash severance benefits for its CEO.
AT&T reported earlier this year that its CEO Randall Stephenson collected nearly $24 million in total compensation for 2014, an increase of about $750,000 compared with his 2013 compensation package, and CFO John Stephens pocketed $10.7 million in 2014 compensation, an increase of nearly $3 million when compared to his 2013 package.
AT&T Mobility CEO Ralph de la Vega was also set to see a significant increase in his compensation from $8.8 million in 2013 to nearly $10.1 million for 2014. However, both years were down from the $11.9 million de la Vega was awarded in 2012. AT&T CSO John Stankey was on tap to collect nearly $10.2 million in total compensation for 2014, while SEVP and General Counsel Wayne Watts received nearly $10.1 million in total compensation last year.
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