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Item 9 on Proxy Card:
Domini Social Investments LLC, 536 Broadway, 7th Floor, New
York, New York 10012-3915, owner of 707,722 shares of the
Companys common stock, proposes the following:
POLITICAL CONTRIBUTIONS REPORT
RESOLVED: The shareholders of Verizon Communications,
Inc. (the Company) hereby request that
the Company provide a report updated semi-annually, disclosing
the Companys:
- 1. Policies and
procedures for political contributions (both direct and
indirect) made with corporate funds.
- 2. Monetary and
non-monetary contributions to political candidates, political
parties, political committees
and other political
entities organized and operating under 26 USC Sec. 527 of
the Internal Revenue Code
including the
following:
- a. An
accounting of the Companys funds contributed to
any of the persons described above;
- b. The
business rationale for the Companys political
contributions; and
- c. Identification
of the person or persons in the Company who participated
in making the decisions
to contribute.
This report shall be posted on the companys website
to reduce costs to shareholders.
SUPPORTING STATEMENT: As long-term shareholders of
Verizon, we support policies that apply transparency and accountability
to corporate political giving.
Company executives exercise wide discretion over the use
of corporate resources for political purposes. They make decisions
without a stated business rationale for such donations. We
believe shareholders are entitled to know how their company
is spending its funds for political purposes. However, although
there are various disclosure requirements for political contributions,
this information is difficult for shareholders to access and
is not complete.
Although the Bi-Partisan Campaign Reform Act enacted in 2002
prohibits corporate contributions to political parties at
the federal level, corporate soft money state-level contributions
are legal in 49 states, and disclosure standards vary widely.
Corporations can also make unlimited contributions to Section
527 organizations, political committees formed for the
purpose of influencing elections, but not supporting or opposing
specific candidates. Corporations are not required to report
these contributions.
In the 2004 and 2006 election cycles, our company contributed
approximately $507,500 and $185,000, respectively, to Section
527 organizations (Figures derived from data provided by http://
www.PoliticalMoneyLine.com, an independent campaign finance
disclosure website). In 2001-02, Verizon made at least $1,610,915.00
in political contributions. (The Center for Responsive Politics:
http://www.opensecrets.org/softmoney/index.asp.)
Relying only on the limited data available from the Federal
Election Commission, the Internal Revenue Service, the Center
for Responsive Politics, a leading campaign finance watchdog
organization, and Political Money Line provides an incomplete
picture of the Companys political donations. Current
disclosure is insufficient to allow the Companys Board
and its shareholders to fully evaluate the political use of
corporate assets.
Absent a system of accountability, corporate executives will
be free to use the Companys assets for political objectives
that are not shared by and may be inimical to the interests
of the Company and its shareholders, potentially harming long-term
shareholder value.
There is currently no single source of information that provides
the information sought by this resolution. This report should
represent a minimal cost to the company, as presumably management
already monitors corporate resources used for such purposes.
We believe that transparency and accountability in this area
will advance our companys interests, and help build
long-term shareholder value. We urge your support for this
critical governance reform.
BOARD OF DIRECTORS POSITION
The Board of Directors believes that the Companys political
contributions constitute an appropriate expenditure of corporate
funds for valid business purposes. The Company has in place
effective reporting and compliance procedures and believes
it has made contributions to political parties and candidates
in accordance with all applicable laws and regulations. The
Public Policy Committee of the Board of Directors periodically
receives reports on contributions and reports on these activities
to the Board. The Board strongly believes that any suggestion
that the Companys contributions fund agendas that are
adverse to the interests of the Company and its shareholders
is unsupported and plainly wrong. The Board is confident that
the Company contributions support those candidates whose views
are consistent with the Companys long-term goals and
interests.
The Companys resources currently allocated to political
activities are insubstantial in comparison to the scope and
extent of the Companys business. Significant information
about political contributions by the Company is already publicly
available as required by applicable state and federal laws.
Accordingly, the Board believes there is no need for the Company
to use its financial and other resources to provide duplicative
and unnecessary information.
For the foregoing reasons, the Board of Directors believes
that this proposal is unnecessary and not in the best interests
of the Company and its shareholders.
The Board of Directors recommends a vote AGAINST this
proposal. |