Verizon Communications

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Campaign to Fix the Debt
Company Profile
Company Name Verizon Communications
CEO Name Lowell McAdam
CEO Compensation $23,120,499
CEO Retirement Assets $8,725,445
Underfunded Company Pension -$6,472,000,000
Annual Company Revenue $110,875,000,000
Tax Dodger ('08-'10) -2.9%
Territorial Tax Break $525,000,000
Federal Lobbying/Political Donations ('09-'12*) $61,890,000
Click here for sources.
2011 data unless otherwise noted.
©2013 Center for Media and Democracy

Verizon (NTSE: VZ) is a telecommunications company headquartered in New York (and incorporated in Delaware). The company formed in 2000 with the merger of Bell Atlantic Corp. and GTE Corp.[1]

In 2011, Verizon had a total revenue of $110 billion.[2]

In 2010, Verizon had total revenue of $106.6 billion. [3] Verizon CEO Ivan Seidenberg received $18.2 million in total compensation that same year; Seidenberg is also a Director of Blackrock. [4]

Ties to Pete Peterson's "Fix the Debt"

The Campaign to Fix the Debt is the latest incarnation of a decades-long effort by former Nixon man turned Wall Street billionaire Pete Peterson to slash earned benefit programs such as Social Security and Medicare under the guise of fixing the nation's "debt problem." Verizon Communications is part of the Campaign to Fix the Debt as of February 2013.

This article is part of the Center for Media and Democracy's investigation of Pete Peterson's Campaign to "Fix the Debt." Please visit our main SourceWatch page on Fix the Debt.

About Fix the Debt
The Campaign to Fix the Debt is the latest incarnation of a decades-long effort by former Nixon man turned Wall Street billionaire Pete Peterson to slash earned benefit programs such as Social Security and Medicare under the guise of fixing the nation's "debt problem." Through a special report and new interactive wiki resource, the Center for Media and Democracy -- in partnership with the Nation magazine -- exposes the funding, the leaders, the partner groups, and the phony state "chapters" of this astroturf supergroup. Learn more at PetersonPyramid.org and in the Nation magazine.

Ties to American Legislative Exchange Council

Verizon is a member of the American Legislative Exchange Council (ALEC). It has been on the corporate "Private Enterprise" board[5] and is State corporate co-chair of Virginia and Wyoming.[6] It has been a member of the ALEC Telecommunications and Information Technology Task Force.[7]

ALEC's Executive Director Ronald Scheberle worked "for 31 years as a key member of the Verizon and GTE Federal and State Governmental Affairs Advocacy Team."[8]

About ALEC
ALEC is a corporate bill mill. It is not just a lobby or a front group; it is much more powerful than that. Through ALEC, corporations hand state legislators their wishlists to benefit their bottom line. Corporations fund almost all of ALEC's operations. They pay for a seat on ALEC task forces where corporate lobbyists and special interest reps vote with elected officials to approve “model” bills. Learn more at the Center for Media and Democracy's ALECexposed.org, and check out breaking news on our PRWatch.org site.


Tax Dodging

From 2008 to 2010 Verizon paid an effective federal income tax rate of -2.9% shown in the report Corporate Taxpayers and Corporate Tax Dodgers. Verizon received $951 million in rebates, which put its federal tax subsidies at $12.3 billion. Verizon received at least $180.8 million in state and local subsidies in recent years - extracted in exchange for locating facilities and supposedly creating jobs. During the past three years, the total number of employees at Verizon has fallen by more than 40,000 and the company’s capital expenditures have declined by $1 billion. These subsidies did not lead to higher compensation for Verizon’s employees and the company is demanding more than $1 billion in wage and benefit concessions from its 45,000 union-represented workers. [9] [10]

Personnel

Board of Directors

As of February 2013[11]

Key executives and 2006 pay: [12]          Options
exercised
Ivan Seidenberg, Chairman and Chief Executive Officer    $2,100,000    $1,800,000
Dennis F. Strigl, Chief Operating Officer    $1,130,000    $0
Doreen A. Toben, Chief Financial Officer    $825,000    $0
William P. Barr, Executive Vice President and General Counsel    $840,000    $0
Lawrence T. Babbio Jr., Advisor    $1,200,000    $0

Political contributions

In 2010, Verizon gave a total of $1.6 million to federal candidates. $783,541 to Democrats and $809,206 to Republicans. Of that total, $97,570 was given by individuals and $1.52 million was contributed by the PAC.[13]

CEO Ivan Seidenberg contributed $32,000 to candidates in the 2010 election cycle.[14] He was a "bundler" for John McCain (R)'s 2008 presidential campaign, raising approximately $117,850. [15]

On June 30, 2011, the Center for Responsive Politics wrote, "Contributions to lawmakers and federal lobbying expenditures by telecommunications interests have spiked as a result of government intervention in the market. Facing potentially stifling federal regulations that threaten to short-circuit their profits, AT&T, Sprint, Verizon and T-Mobile have each dumped millions of dollars into campaign contributions and federal lobbying expenditures, hoping that a barrage of political influence will subdue any unwanted restrictions." [16]

Between 2009 and 2011, Verizon spent $2,686,585 on federal campaign contributions. [17]

Past Elections

Verizon Chairman and Chief Executive Officer Seidenberg was a Bush Pioneer, having raised at least $100,000 for Bush in the 2004 presidential election. [18]

Peter Davidson, Senior Vice President for Federal Government Relations (lobbyist) at Verizon, was a Bush Pioneer. Davidson passed twice through the government-industry revolving door serving as general counsel and policy director to then-House Majority Leader Dick Armey (R-Texas). Davidson then worked for Qwest Communications, then in the George W. Bush administration with the U.S. Trade Representative, then moving to Verizon. [19] [20]

Verizon gave $1,086,400 to federal candidates in the 05/06 election cycle through its political action committee (PAC) - 36% to Democrats, 63% to Republicans, and 1% to other parties. [21]

Lobbying

In 2010, Verizon Communications spent $16,750,000 on lobbying expenditures.[22] A full list of lobbyists used can be seen HERE.

Verizon spent $52.34 million on lobbying expenditures from 2008 to 2010, according to a December 2011 Public Campaign report on corporate lobbying expenditures as compared to federal taxes paid.[23]

Verizon lobbied for over 110 bills in the House and Senate in 2010.[24]

The company spent $13,050,000 for lobbying in 2006. About half of the money went for in-house lobbyists with the remainder being spent on over 40 lobbying firms, some of which were Federalist Group, Patton Boggs, Ernst & Young, Quinn Gillespie & Associates, Bryan Cave Strategies, DCI Group, Cassidy & Associates, The Livingston Group, Mayer, Brown, Rowe & Maw, and Parry Romani DeConcini & Symms. [25]

According to a Public Campaign report, Verizon spent $52.34 million on lobbying between 2008-2010. During the same time period, it received $951 million in tax rebates, and made $32.518 in US profits, meaning it paid a tax rate of -3%. Executive compensation also 167%, from $7,635,651 in 2008 to $20,361,064 in 2010. [26]

Contact details

140 West St.
New York, NY 10007
Phone: 212-395-1000
Fax: 212-571-1897
Web: http://www22.verizon.com/

Resources and articles

Related SourceWatch resources

Featured SourceWatch Articles on Fix the Debt

External articles

References

  1. "History" Chapter 1, Verizon.com, accessed July 10, 2011.
  2. "2011 Annual Report", Verizon, 2011.
  3. History Chapter 2, Verizon.com, accessed July 10, 2011.
  4. Ivan Seidenberg profile, Forbes.com, accessed July 10, 2011.
  5. American Legislative Exchange Council Private Enterprise Board, organization website, accessed June 9, 2011
  6. American Legislative Exchange Council, "Solutions for the States," 38th Annual Meeting agenda, on file with CMD, August 3-6, 2011
  7. TI Task Force Meetings, ALEC website, accessed July 10, 2011.
  8. Scheberle bio, Bingham Consulting website, accessed July 10, 2011.
  9. Laura Clawson Verizon pays a negative federal income tax rate, then pursues more tax breaks, Daily Kos, November 16, 2011
  10. Robert S. McIntyre, Matthew Gardner, Rebecca J. Wilkins, Richard Phillips Corporate Taxpayers and Corporate Tax Dodgers 2008 - 10, CTJ.org, November 2011
  11. "Meet the Board", Verizon, Accessed February 11, 2013.
  12. Verizon Key Executives, Yahoo Finance, accessed September 2007.
  13. Verizon Communications Contributions,"Open Secrets.org"
  14. Center for Responsive Politics, Ivan Seidenberg Political Contributions, Open Secrets, accessed July 10, 2011.
  15. McCain "bundlers", Open Secrets, accessed July 10, 2011.
  16. Center for Responsive Politics, Capital Rivals: A Telecom Battle Royal, Open Secrets, June 30, 2011, accessed July 10, 2011.
  17. For Hire: Lobbyists or the 99%? How Corporations Pay More for Lobbyists Than in Taxes Public Campaign, December 2011
  18. Bush Pioneer Ivan Seidenberg, Texans for Public Justice, accessed September 2007.
  19. Bush Pioneer Peter Davidson, Texans for Public Justice, accessed September 2007.
  20. Daniel Lathrop, "Bells vs. AT&T", The Center for Public Integrity, October 28, 2004.
  21. 2006 PAC Summary Data, Open Secrets.
  22. Verizon Communications Lobbying, "Open Secrets.org"
  23. Public Campaign, For Hire: Lobbyists or the 99%? How Corporations Pay More for Lobbyists Than in Taxes, organizational report, December 2011
  24. Verizon Communications Lobbying,"Open Secrets.org"
  25. Verizon Communications lobbying expenses, Open Secrets.
  26. For Hire: Lobbyists or the 99%? How Corporations Pay More for Lobbyists Than in Taxes Public Campaign, December 2011