Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Verizon Faces Investor Vote on Adding Cybersecurity Link to Pay

March 9, 2018, 8:47 PM

Verizon Communications Inc. investors will weigh in this year on a proposal to tie top executives’ pay to how well it protects networks and customer information from cyberattacks.

The proposal, from New York state’s nearly $200 billion pension fund and socially conscious investment firm Trillium Asset Management, is going to a shareholder vote after the Securities and Exchange Commission on March 7 deniedthe telecommunications company’s request to block it.

Verizon didn’t explain its board’s view when it argued that cybersecurity is part of its day-to-day business and shouldn’t be subject to a vote, SEC staff said. The staff recently issued guidance telling companies that make such requests to show that their board was involved.

Verizon revealed in October that all 3 billion accounts from its newly acquired subsidiary Yahoo! Inc. were affected by what’s considered the largest data privacy breach in history. Yahoo! had previously said 1 billion accounts were breached.

Verizon itself has also faced cybersecurity issues, the shareholder proposal said. A Verizon spokesman didn’t immediately return a request for comment.