Telecom Investors: Can You Hear Us Now?

The AFL-CIO, the union umbrella representing 10 million workers, says that members are increasingly frustrated, having watched deferred wages through pension funds with several telecom companies disappear.

"The boards have fundamentally failed in watching over management, and shareholders need tools to hold them accountable," says to Dan Pedrotty, director of the office of investments. "Boards are going to keep getting this wrong if they're not held accountable."

Verizon Offers Shareholders a 'Say'

Shareholders now seem to have been bloodied enough to fight back against footing the bill for high-priced exits, given the kind of windfalls executives like Sprint's Forsee received -- whether they left voluntarily or were forced out.

At their 2007 annual gathering, Verizon(VZ - Cramer's Take - Stockpickr) shareholders approved a say-on-pay proposal with a slim majority vote of 50.2%, a move that would give them a nonbinding vote on salaries for CEO Ivan Seidenberg and four other executives.

In November, Verizon said it will adopt the advisory vote, giving shareholders a voice in executive pay starting in 2009. The AFL-CIO, which highlighted Verizon as the poster child for pay for failure on its Executive PayWatch Web site in 2007, called the move "a strong victory for investors."

However, an 8% drop in share value over the last year has forced shareholders to again turn up the heat on Verizon for the May 1 meeting, especially as Seidenberg's salary continues to rise. Outspoken shareholder activist and frequent CNBC guest Evelyn Davis is urging Verizon's board to abandon all future new stock option awards to senior executives, citing recent scandals and earnings manipulations at financial institutions. Additionally, the Association of BellTel Retirees is asking shareholders to vote for the separation of the roles of chairman and CEO.