WHEREAS: According to public data collected by OpenSecrets.org, Verizon Communications Inc. and its employee PAC have ranked in the top 1% of political donors in every election cycle since at least 2012.[1]

As the Supreme Court has explained, transparency in corporate electoral spending Òpermits citizens and shareholders to react to the speech of corporate entities in a proper wayÓ by providing Òshareholders and citizens with the information needed to hold corporations and elected officials accountable.Ó[2]

Greater political spending transparency is associated with Òbetter internal corporate decision-makingÓ and Òfacilitates a positive relationship between corporate political spending and future financial performance.Ó[3]

By contrast, political donations to candidates that do not fully align with a companyÕs stated values and commitments may create long-tail reputational risks to the Company when recipients engage in polarizing political acts. The impacts on a company may include difficulties in recruiting and retaining talented employees, shareholder dissatisfaction, and public backlash and boycotts.[4]

Verizon publicly discloses a policy on corporate political spending and its direct contributions to candidates, parties, and committees. Verizon does not, however, disclose information regarding misalignment between its political spending and the CompanyÕs strategic and operational needs or its publicly stated values and vision as articulated in its corporate responsibility reporting.

As a result, investors are unable to determine if Verizon is directing its political expenditures in a way that is consistent with the CompanyÕs strategic needs, values, and interests. Clear policies and reporting on VerizonÕs political spending would provide investors with assurance that the inherent brand risk associated with political spending is well-managed.