'CEO too tired from counting $71m?': Kennedy mercilessly roasts Verizon exec over Jack Smith Probe

Key Concepts

Subpoena Compliance: Verizon’s response to a subpoena issued by Special Counsel Jack Smith regarding Senator records.
Jack Smith: Special Counsel appointed to investigate and prosecute cases, specifically a former President.
Judge Boasberg: Judge who signed the non-disclosure order related to the subpoena.
Data Privacy & Security: Concerns regarding Verizon’s handling of customer location data and potential sharing with third parties.
Legal Counsel Testimony: Questioning of Verizon’s General Counsel regarding past legal issues and current subpoena response.
Potential Bias: Allegations of political bias against Republicans by Judge Boasberg.
Corporate Board Awareness: Inquiry into whether Verizon’s board of directors was informed about the subpoena and its handling.
Non-Disclosure Order: A legal order restricting the disclosure of information related to the subpoena.

Questioning of Verizon General Counsel Before Senate Committee

This transcript details a contentious exchange between a Senator and Verizon’s General Counsel (referred to as “Counsel” or “Mr. Miller”) during a Senate hearing. The core of the questioning revolves around Verizon’s compliance with a subpoena issued by Special Counsel Jack Smith for Senator records, and a broader examination of Verizon’s past legal issues and practices.

I. Initial Focus: CEO Absence & Salary

The Senator immediately challenges the absence of Verizon’s CEO, Dan Schulman, questioning his respect for the Senate. The Senator sarcastically suggests Schulman may be preoccupied with counting his substantial salary, stating, “I looked up his salary last year. He made $71 million. Maybe he's been up all night counting his money and he's tired. Could that be it?” The Counsel defends Schulman, stating he is “very focused on finding the right solutions for the committee” and “absolutely respects the United States Senate.” The Senator later corrects himself, noting Schulman is the CEO of PayPal, not Verizon.

II. Past Legal Issues & Counsel’s Role

The Senator then pivots to a series of accusations regarding Verizon’s past legal troubles, repeatedly questioning the Counsel’s involvement and awareness during those periods.

GSA Overcharging: The Senator alleges Verizon paid $93.5 million for cheating taxpayers by overcharging invoices to the General Services Administration (GSA). The Counsel claims unfamiliarity with the specifics.
FCC Fine: The Senator references a $46.9 billion fine levied by the Federal Communications Commission (FCC) for sharing customer location data with third parties. The Counsel clarifies he was not the CEO of Verizon at the time, but is familiar with the matter.
Oregon Litigation: The Senator brings up a $30 million settlement in Oregon litigation related to alleged cheating of employees. Again, the Counsel states he was not in his current role at the time but has some familiarity.
Hiring Quotas: The Senator accuses Verizon of implementing racial and gender quotas in hiring practices, which the Counsel denies, stating, “I’m not aware of Verizon ever implementing quotas in hiring.” He acknowledges that such practices are illegal.
Critical Race Theory Training: The Senator alleges Verizon required employees to attend classes on Critical Race Theory, including concepts like “systemic racism,” “white fragility,” and “intersectionality.” The Counsel vehemently denies this claim, stating, “That has never happened.”

III. Subpoena Compliance & Lack of Investigation

The central focus shifts to the subpoena issued by Jack Smith. The Senator aggressively questions the Counsel about Verizon’s response.

Awareness of Jack Smith’s Affiliation: The Senator establishes that the Counsel was aware Jack Smith was appointed by President Biden to prosecute a former President.
Non-Disclosure Order & Judge Boasberg: The Counsel confirms receipt of a non-disclosure order signed by Judge Boasberg, listing individuals potentially at risk of evidence destruction or witness tampering.
Failure to Investigate Subpoenaed Individuals: The Senator expresses outrage that Verizon did not investigate the identities of the individuals whose records were subpoenaed. The Counsel initially states that the analyst responding to the subpoena included the subscriber names, but admits he personally did not look up the names. This leads to a heated exchange, with the Senator accusing the Counsel of stalling.
Board of Directors Awareness: The Senator questions whether Verizon’s board of directors, which includes representatives from companies like Starbucks, Coca-Cola, UPS, Longhorn Steakhouse, and Olive Garden, was aware of the subpoena and its handling. The Counsel requests clarification on what “all of this” refers to.

IV. Allegations of Compliance & Closing Remarks

The Senator accuses Verizon of simply complying with the subpoena without challenge, describing their response as “sucked it up like a Hoover Deluxe.” He further alleges Verizon did not appeal the order, contact Senators, or file a motion to quash. The Counsel maintains Verizon followed the law.

The Senator concludes with a scathing rebuke, telling the Counsel to “hide your head in a bag” and stating, “this isn’t over.”

Technical Terms & Concepts

Special Counsel: An independent investigator appointed to investigate and prosecute specific cases, often involving high-profile or politically sensitive matters.
Subpoena: A legal document requiring a person or entity to appear in court or provide documents.
Non-Disclosure Order: A court order restricting the disclosure of information.
GSA (General Services Administration): An independent agency of the United States government that provides support services to federal agencies.
FCC (Federal Communications Commission): An independent agency of the United States government that regulates communications.
Critical Race Theory: A theoretical framework examining the social and legal aspects of race and racism.
Systemic Racism: Racism embedded as normal practice within a society or institution.
White Fragility: A term describing the discomfort and defensiveness white people experience when confronted with information about racial inequality.
Intersectionality: The interconnected nature of social categorizations such as race, class, and gender, creating overlapping systems of discrimination or disadvantage.

Logical Connections

The questioning follows a clear progression. It begins with a procedural challenge (CEO absence), moves to historical accusations of wrongdoing, and culminates in a focused examination of the subpoena response. The Senator strategically uses past legal issues to cast doubt on Verizon’s current integrity and to suggest a pattern of compliance without due diligence. The repeated questioning about the Counsel’s role during past incidents aims to establish a lack of accountability.

Data & Statistics

Dan Schulman’s Salary: $71 million (last year)
GSA Settlement: $93.5 million
FCC Fine: $46.9 billion
Oregon Litigation Settlement: $30 million

Synthesis/Conclusion

The transcript reveals a highly adversarial Senate hearing focused on scrutinizing Verizon’s response to a subpoena and its past legal conduct. The Senator’s aggressive questioning suggests a deep distrust of Verizon and a belief that the company prioritized compliance over protecting the privacy and rights of individuals potentially targeted by the subpoena. The core takeaway is the Senator’s strong implication that Verizon acted passively and potentially inappropriately in fulfilling the subpoena request, failing to adequately investigate the implications or challenge the process. The hearing highlights concerns about data privacy, potential political bias, and corporate accountability.