Verizon Holders Reject Splitting Chairman, CEO Posts

Verizon Communications Inc. said Wednesday that shareholders rejected a proxy resolution to separate the roles of chairman and chief executive, four months after CEO Ivan Seidenberg became head of the board.

Based on a preliminary count, 63% of shares voted were against the proposal, made by the AFL-CIO labor union. Shareholders approved the reelection of the board and rejected six other proposals, Seidenberg said at Verizon’s annual meeting.

The AFL-CIO had contended that having one person as chairman and CEO might foster conflicts of interest. About three-fourths of companies in the Standard & Poor’s 500 index have CEOs who also are chairmen, according to the Corporate Library, a governance research company.

Verizon’s board had said the proposal would limit its flexibility in appointing a chairman and would hurt its ability to conduct business efficiently, according to Verizon’s proxy statement.

Shares of Verizon rose 16 cents to $37.66 on the New York Stock Exchange.