Observations on Verizon Retirees

There is a group called the Verizon Retirees who have issued a press release regarding capping Verizon executive pensions. Being such a retiree, and having worked for a while directly for Seidenberg, and having run several of my own telecom business in my career, I think it is worth an observation.

First, in my opinion Seidenberg is one of the best senior executives I have ever met. He is focused, at time a bit mercurial, very bright, a chess player who thinks twenty moves ahead, and despite what the market thinks he is always keeping quite a few steps ahead. On a dividend basis alone Verizon stock is better than US Treasuries. If China were just plain greedy they would buy Verizon and not US Treasuries.

Second, Verizon has developed a long term strategy which is brilliant. We have written on it many times, in our opinion. They build fiber, close down copper, use the real estate that is no longer needed to pay for the fiber and still have cash left over. The new company has no need of central offices, it reduces its outside plant costs dramatically and it positions itself to clobber the cable companies. One chess move at a time, brilliant.

Third, wireless is integrated. The only mistake they have made is Vodaphone, because Vodaphone will not depart at any price. But alas that is not a strategic problem. All they have to do is to continue add new services.

Fourth, the management is now being prepared for succession. People like Killian represent the next generation. Great choice and it is clear that even here Seidenberg is thinking well ahead. He has a great team with Strigel and the others. He managed without any massive palace intrigues to select, build, integrate, and operate.

So what are the retirees complaining about. They got their pension, as did I, albeit after problems with the pension outsourced manager, but that is another story of corporate bungling, not a Verizon issue, and so health care changes, but it has for all of us.

I think every ponce in a while one should compliment a good manager, so good job Ivan!