IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
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75

Verizon Communications

(NYSE: VZ)

USA

With its MCI merger complete, Verizon is pushing even more aggressively into the wireless business. CEO Ivan Seidenberg hasn't been shy about letting people know he wants to buy out the 45% of Verizon Wireless that is currently held by Vodafone. It would cost him at least $40 billion to do so, but might well be worth it. Verizon Wireless, after all, has the best margins in the business. And while wireless sales in the first quarter grew 16.7%, Verizon's musty old wire-line business continues to shrink. No wonder Seidenberg is studying deals to sell off more of those land lines. Verizon is one of the largest players on our list, with $79.7 billion in revenues, and was able to boost that top line by 10%. But the question for investors continues to be, can Seidenberg move fast enough to adjust to the new world of wireless and broadband networks that are rapidly replacing traditional phone service?

Company Info

2005 Rank

41

Sales*
($ Millions)

79,676.0

Sales Growth
(over prev. year)

10 %

Profits*
($ Millions)

7,314.0

Return on Equity

16.3 %

Total Return on Sales (12-mo.)

-7.3

Share Price
As of 5/31/06

31.21

CURRENT
MARKET INFO

NYSE: VZ

No. of Employees

252,000

Industry Telecommunications
COMPANY WEB SITE >
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Verizon Communications provides communication services worldwide. It has four segments: domestic telecom, domestic wireless, information services; and international. The domestic telecom segment provides voice and data transport, enhanced and custom calling features, network access, directory assistance, private lines, and public telephones in 28 states and Washington, D.C. This segment also provides long-distance services, customer premises equipment distribution, data solutions and systems integration, billing and collections, Internet access services, and inventory management services. The domestic wireless segment provides wireless voice and data services and equipment across the U.S. The information services segment is involved in directory publishing businesses, which includes print directories and SuperPages.com online search services, as well as Web site creation and other electronic commerce services. The International segment includes wireline and wireless communications operations and investments primarily in the Americas and Europe. The company was incorporated in 1983 as Bell Atlantic and changed its name as Verizon Communications in 2000. Verizon Communications is based in New York.


Data provided by Capital IQ
 
Ivan G. Seidenberg

Ivan G. Seidenberg, 58

Chairman and Chief Executive Officer

Total Compensation

$11,674,100

Value of Options

$2,200

City University of New York, The - BA, Pace University - Member of the Board of Directors

Ivan Seidenberg has been chief executive officer of Verizon Communications since April, 2002, and chairman since December, 2003. Seidenberg served as president of Verizon Communications from April, 2002, to December, 2003. Seidenberg was instrumental in reshaping the communications industry through two of the largest mergers in its history: the merger of Bell Atlantic and NYNEX in 1997 and the Bell Atlantic merger with GTE in 2000. He also led efforts in September, 1999, to form Verizon Wireless, the nation's largest cellular business, composed of the wireless assets of Bell Atlantic, GTE, and Vodafone Airtouch. Seidenberg began his communications career as a cable splicer's assistant. His career has encompassed numerous operations and engineering assignments, including various leadership positions at AT&T and NYNEX. Seidenberg has been chairman of Verizon Wireless Capital since April, 2000. He has been a director of Verizon Communications since 1997. Seidenberg has been a director of Honeywell International since 1995 and serves as a member of the management development and compensation committees. He has been a director of Wyeth since 1996. Seidenberg serves as a director of CVS, Boston Properties, the Museum of Radio & Television, the National Urban League, the Hall of Science, and Pace University. Seidenberg serves on the boards of the Verizon Foundation and New York Presbyterian Hospital. He earned a bachelor's degree in mathematics from Lehman College of the City University of New York and an MBA from Pace University.



Executive Data provided by Capital IQ