Are you curious about the financial world of top executives? Want to know how much the person managing the vast finances of a telecommunications giant like Verizon actually takes home? You've come to the right place! Understanding executive compensation can be a complex but fascinating journey, revealing insights into corporate governance, performance incentives, and the sheer scale of modern business. Let's dive in and demystify the compensation of Verizon's CFO.
How Much Does the CFO of Verizon Make? A Deep Dive into Executive Compensation
The Chief Financial Officer (CFO) of a company like Verizon holds a pivotal role, overseeing all financial aspects, including financial planning, risk management, and reporting. Their compensation reflects not only the immense responsibility but also the company's performance and market trends for top talent.
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| How Much Does.the Cfo Of.verizon Make |
Step 1: Engage with the Current Reality: Who is Verizon's CFO?
Before we talk numbers, let's identify the individual currently holding this significant position. As of our last update, Anthony Skiadas serves as the Executive Vice President and Chief Financial Officer at Verizon Communications. He assumed this role on May 1, 2023, bringing a wealth of experience from his previous position as SVP and Controller of Verizon. Understanding who the CFO is helps contextualize the compensation figures we're about to explore.
Step 2: Unveiling the Numbers: Anthony Skiadas's Compensation in 2024
Let's get straight to the figures. According to recent public disclosures, Anthony Skiadas, Verizon's CFO, received a total compensation of $11.25 million in 2024. This represents a significant increase of approximately 25.96% from his 2023 compensation of $8.93 million, indicating a positive trajectory in his earnings.
Sub-heading: Breaking Down the $11.25 Million
It's crucial to understand that executive compensation is rarely just a "salary." It's a comprehensive package designed to incentivize performance and align the executive's interests with the company's long-term success. Here's a breakdown of Skiadas's compensation for 2024:
Base Salary: He received a base salary of $1.00 million. This is the fixed component, providing a stable income regardless of company performance. It was increased from $800,000 to $1,000,000 as of January 1, 2024.
Incentive Plan Compensation (Bonus): A substantial portion came from incentive plan compensation (often referred to as a bonus) of $1.55 million. This part is usually tied to specific financial or operational goals achieved by the company and the individual.
Stock Award: The largest component of his compensation was a stock award of $8.50 million. Stock awards are a common form of long-term incentive, vesting over several years and designed to align the executive's financial interests with the company's stock performance. His target long-term incentive opportunity was raised from $7.00 million to $8.50 million.
Other Compensation: Finally, he received $205,010 in "other compensation." This can include a variety of benefits, such as retirement contributions, perquisites (like personal use of company aircraft, if applicable), and other benefits not categorized in the above.
Step 3: Understanding the 'Why': Factors Influencing CFO Compensation
The compensation of a CFO, especially at a massive corporation like Verizon, isn't arbitrary. Several critical factors come into play:
Tip: Keep the flow, don’t jump randomly.
Sub-heading: Company Size and Revenue
Verizon is a telecommunications behemoth with billions of dollars in revenue. The sheer scale of financial operations, the complexity of managing global financial strategies, and the potential impact of financial decisions directly correlate with the compensation level. A larger company generally means greater responsibility and, consequently, higher pay.
Sub-heading: Industry Benchmarks and Peer Comparison
Companies regularly benchmark executive salaries against their peers in the same industry. Verizon operates in a highly competitive telecommunications sector, vying for top talent. To attract and retain a high-caliber CFO, their compensation package must be competitive with what other major telecom companies or similarly sized corporations offer their financial leaders.
Sub-heading: Company Performance
A significant portion of executive compensation is performance-based. This means that if Verizon performs well – hitting financial targets, increasing shareholder value, and achieving strategic objectives – the CFO's incentive plan compensation and the value of their stock awards will likely increase. Conversely, underperformance could lead to a reduction in these variable components.
Sub-heading: Individual Experience and Track Record
Anthony Skiadas's extensive experience within Verizon, having served as SVP and Controller, likely played a crucial role in his appointment and subsequent compensation adjustments. A proven track record of financial leadership and strategic acumen adds significant value to an executive's profile.
Sub-heading: Governance and Shareholder Scrutiny
Public companies are required to disclose executive compensation in detail through proxy statements filed with the Securities and Exchange Commission (SEC). This transparency allows shareholders to review and vote on executive pay (often an advisory "say-on-pay" vote). This scrutiny can influence compensation decisions, encouraging boards to tie pay to performance and avoid excessive or unjustified payouts.
QuickTip: Skim the first line of each paragraph.
Step 4: Where to Find This Information: The Transparency of Public Filings
If you're wondering how we know these figures, it's all thanks to regulatory requirements for public companies.
Sub-heading: SEC Filings (Form 10-K and Proxy Statements)
Public companies like Verizon are mandated by the U.S. Securities and Exchange Commission (SEC) to disclose detailed information about executive compensation. The most common places to find this are:
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Annual Reports on Form 10-K: This is an annual report providing a comprehensive summary of a company's financial performance.
Proxy Statements (DEF 14A): These documents are sent to shareholders before annual meetings and contain detailed information about executive compensation, board members, and other proposals requiring a shareholder vote. They often include a "Compensation Discussion and Analysis" section that explains the rationale behind executive pay decisions.
These documents are readily available on the SEC's EDGAR database and often on the investor relations section of the company's own website.
Step 5: Putting it in Perspective: The Broader Context of Executive Pay
While $11.25 million might seem like an astronomical figure to many, it's important to view it within the context of a multi-billion dollar enterprise. The CFO's decisions can have a profound impact on a company's financial health, affecting thousands of employees, millions of customers, and countless investors. The compensation is often seen as a reflection of the value generated and the risks managed by such a critical role.
Moreover, the trend in executive compensation has generally been upward, driven by competition for talent, the increasing complexity of global business, and the emphasis on performance-based pay.
Frequently Asked Questions (FAQs) about Executive Compensation
Here are 10 common "How to" questions related to executive compensation, with quick answers:
QuickTip: Pause at lists — they often summarize.
How to understand the different components of executive compensation?
Executive compensation typically includes base salary (fixed pay), cash bonuses (short-term performance-based), stock awards and stock options (long-term equity incentives), and other compensation (perks, benefits, retirement contributions).
How to find executive compensation information for a public company?
You can find executive compensation details in a public company's annual proxy statement (DEF 14A) and annual report (Form 10-K) filed with the SEC. These are accessible on the SEC's EDGAR database or the company's investor relations website.
How to interpret stock awards and stock options in executive pay?
Stock awards are actual shares of the company's stock granted to the executive, often with a vesting schedule. Stock options give the executive the right to purchase company shares at a predetermined price in the future. Both incentivize long-term performance and alignment with shareholder interests.
How to assess if an executive's pay is "fair"?
Fairness is subjective, but common assessments involve comparing the executive's pay to company performance (e.g., revenue growth, stock price appreciation) and peer compensation within the same industry and company size.
How to understand the role of the compensation committee?
A company's Board of Directors has a Compensation Committee (composed of independent directors) responsible for setting executive pay. They review performance, market data, and company goals to design compensation packages.
QuickTip: The more attention, the more retention.
How to influence executive compensation as a shareholder?
Shareholders of public companies can cast an advisory "say-on-pay" vote on executive compensation packages at annual meetings. While non-binding, these votes can signal shareholder sentiment to the board.
How to differentiate between fixed and variable compensation?
Fixed compensation is the guaranteed portion, primarily the base salary. Variable compensation is contingent on performance, like cash bonuses and equity awards, and can fluctuate based on achieved targets.
How to find historical executive compensation data?
Historical data can be found in past annual proxy statements and Form 10-K filings on the SEC's EDGAR database, typically going back several years.
How to compare executive compensation across different industries?
While direct comparisons can be challenging due to industry-specific nuances, you can still compare the components of compensation and look for general trends. However, it's most insightful to compare within the same industry for true apples-to-apples analysis.
How to understand the impact of executive compensation on company strategy?
Executive compensation is designed to align the executive's interests with company strategy. Performance-based incentives encourage executives to make decisions that lead to the company's long-term success, often tied to financial metrics, innovation, or market share growth.
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