Verizon Communications Inc. (VZ, Financial) has announced significant updates regarding executive compensation and revenue classification. On March 18, 2025, the Human Resources Committee of Verizon's Board of Directors recommended, and the Board approved, an increase in the annual target long-term incentive opportunity for Chairman and CEO Hans Vestberg. This decision was based on an assessment of the market competitiveness of his total compensation, his tenure, and his experience. Mr. Vestberg's target for the 2025 long-term incentive opportunity has been increased from $18 million to $25 million. The award comprises 67% performance stock units (PSUs) and 33% restricted stock units (RSUs), consistent with prior annual long-term incentive awards for senior executives.
Additionally, Verizon has reclassified recurring device protection and insurance-related plan revenues from 'Other revenue' into 'Wireless service revenue' starting in the first quarter of 2025. Furthermore, the company will no longer include the impacts of the second number offering in calculating wireless retail postpaid phone net additions, wireless retail postpaid phone churn, and other phone metrics. These changes aim to provide a clearer financial and operational picture to investors.
Verizon has provided certain unaudited historical financial and operating information reflecting these changes for investor convenience. This information is furnished and not filed with the Securities and Exchange Commission, except as expressly set forth by specific reference in any such filings.
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