Verizon Communications agreed to put the company’s compensation plans to an annual vote by investors beginning in 2009 after shareholders pressured the company over executive compensation. The decision came after over 50% of shareholders came out in support of a “say on pay” proposal suggested by BellTel Retirees. The vote will give shareholders the right to cast a non-binding vote that will serve as guidance for the company’s board to make compensation decisions.

C. William Jones, executive director of BellTel Retirees, said he was pleased with the board’s decision but somewhat puzzled as to why they are delaying it till the 2009 meeting. Executive compensation has rocketed in recent years with Verizon’s CEO netting $20 million – an 11% increase over 2005.