Verizon demands huge worker bene cuts-profits are soaring & its CEO gets $18 million in compensation

[tpsbmam]

As Verizon Demands Huge Cuts To Worker Benefits, Its Profits Soar And Its CEO Gets $18 Million In Compensation at TPM.

It provides some critical perspective, no?!!


Cutting workers benefits as a cost-saving measure is a natural part of a market economy when times are bad, but what is particularly outrageous about Verizon’s demands is that the company’s fiscal health is actually rapidly improving and its profits soaring. The company’s quarterly report released in January found that their profits nearly doubled from the same point last year. Then in April, Bloomberg reported that the company’s profits “more than tripled” after the company began offering services on Apple’s popular iPhone, with net income approaching $1.44 billion:

Verizon Communications Inc. (VZ), the second-largest U.S. phone company, reported earnings that more than tripled as taxes decreased and the carrier attracted new customers after introducing Apple Inc. (AAPL)’s iPhone. Net income rose to $1.44 billion, or 51 cents a share, New York-based Verizon said today in a statement.

Their 2010 annual report shows that their stock returns are actually outperforming the wider market, easily overcoming the S&P 500 index:




More at TPM.

(Formatting note: all quotes are TPM, the indented quote is following their indented block quote format in the post.)

[abelenkpe]

1. Fire the CEO and pay the workers bennies

How difficult is that?

[Initech]

2. Yeah but if you fire the CEO he'll still get $10 million in stock pay.

CEO is just another word for fucking thief.

[metalbot]

6. The CEO salary is a red herring anyway

To put that in perspective, if the CEO gave up his compensation, and redistributed it entirely to Verizon's workers, each worker would make a bit less than $8 per month more.

Talking about the CEO salary instead of pre-tax income is silly.

[Lindsay]

3. The new and improved version

of the American Dream.

[aquart]

4. Bloody brass balls those bastards have.

[hakko936]

5. Put it into perspective with the number of employees...

...45,000 employees.

Divide the $1.44 billion net profit and you have $32k per worker.

Divide the $18 million CEO package and you have $400 per worker.

What is my point?

Cutting the CEO package isn't going to get this done even if he works for free. The CEO is being paid 1.25% of the net profit. Doesn't sound like much, but it adds up. Is he worth it? Hell no.

All of that being said, if you do the math, you have about 2.8 billion shares or stock. If you drop the net income by 5%, you return $72 million to the employee or $1600 per employee. If you combine that with cutting the CEO pay by 50%, you have $1800 per year per employee to pay for benefits.

Problem solved.......myabe?

[lpbk2713]

7. Verizon would probably get everything they wanted ...

if we were still under the corrupt and evil BushCo Regime. As a payback for the telcos cooperation with their
warantless privacy invasions. BushCo would see to it that the striking workers were fired and/or arrested.

[erpowers]

8. Conoco Phillips Paid About $65 Million to five People

A few weeks ago I saw a list of compensation packages given to executives. Three of Conoco Phillips' executives were paid over $10 million. Two others were paid at least $5 million. As mentioned in the title, when I added up the figures the total was around $65 million per year.

[jtrockville]

9. I just called VZ support today. I ask him why he wasn't on the picket line.

He said "That doesn't concern us. That's all I'm 'allowed' to say."

[hakko936]

12. Does this include Verizon Wireless?

I thought I saw somewhere that Verizon Wireless was not part of this issue. Was I hallucinating?

[jtrockville]

14. I called for a landline. Not sure whether or not VZW is striking too.

[lpbk2713]

13. It could have been a call center contracted by Verizon.

And as such the person you spoke with was likely a temp or a part timer, not eligible to join a union.

[L0oniX]

10. If you dont travel out of your area a lot switch to MetroPCS and be done with those contract asses.

Fuck Verizon ...and Sprint too.

[shanti]

15. that's exactly

what i'm planning to do when my contract is up in september. can you use your vzw phone with metro? i used to have metro in the past for my son, and was satisfied with it.

[L0oniX]

16. You can get it flashed but it might lose some features.

[kcass1954]

17. That's what we did.

Dumped the AT&T house phone, and dropped my AT&T cell when the contract was done.

Three in my household, three cell lines, unlimited everything, $105/month includes all taxes and fees.

[TK421]

11. The more I learn about these scumbags, the more I hate their guts n.t