This excerpt taken from the VZ DEF 14A filed Mar 17, 2008.
Compensation Objectives and Elements
The Companys compensation program is designed to:
In setting total compensation at appropriate competitive levels, the Committee determines the balance between:
The following are the key elements of Verizon's compensation program:
The named executive officers are eligible to receive medical, disability and savings plan benefits that are generally provided to all management employees. The named executive officers are also eligible for certain executive life insurance, financial planning and corporate transportation benefits, which are provided in order to attract high-performing executives and to enhance the executives safety and security.
In establishing a pay-for-performance environment, the Committee balances the importance of meeting the Companys short-term business goals with the need to meet Verizon's goal of creating sustained shareholder value. The Committee has emphasized creating sustained shareholder value in setting the relative weighting of overall compensation opportunities. Accordingly, annual incentives represent approximately twenty percent of the total compensation opportunity while long-term incentives that are linked with stock performance, especially as measured by Verizons total shareholder return1 over a three-year period, represent approximately seventy percent of the total compensation opportunity.