Delphi wins court OK on executive salaries ($38 million in bonuses)

[Bozita]

Unfuckingbelievable!

http://freep.com/apps/pbcs.dll/article?AID=/20060211/BUSINESS01/602110370/1014/BUSINESS

TROUBLED AUTO SUPPLIERS: Delphi wins court OK on executive salaries

$38 million to retain top bosses

BY JASON ROBERSON
FREE PRESS BUSINESS WRITER

February 11, 2006


Delphi Corp. can give its executives as much as $38 million in bonuses to keep them from leaving at the same time the auto supplier wants to cut the jobs of 24,000 hourly workers and pay remaining workers less than half their wages. Late Friday, U.S. Bankruptcy Judge Robert Drain authorized Delphi to make the payments over an objection by Delphi's creditors committee, which said Feb. 6 the compensation plan "is not a reasonable or justifiable exercise of business judgment."

Five unions, including the United Auto Workers, objected to the bonus plan and indicated that the executive bonuses would make it more difficult for Delphi to reach agreement on labor concessions.

Less than a week after filing for bankruptcy on Oct. 8, Delphi Chief Executive Steve Miller requested to implement a controversial employee compensation program to keep his management team intact. Investors, politicians and labor leaders vehemently opposed it.

Delphi is planning to make bonus payments of $21 million as part of its annual incentive program, which provides executives with bonuses equal to one-half of their current salary. Delphi still has the option of giving the other $17 million in executive bonuses.

more...


Here's some video of a Detroit TV newsguy reporting on the Delphi execs-in-bankruptcy story. This reporter is pissed!. Take a listen:
http://www.wxyz.com/wxyz/ys_investigations/0,2132,WXYZ_15949,00.html

[napi21]

1. I understand why the court doesn't want to "tell a Co. what they can pay

their people". What I don't understand is WHY Delphi is still willing to do this? "To retain their mgmt team?" That's BS. With the whole auto industry in a mess, WHERE are those high paid people going to go? WM???

[acmavm]

8. I don't know why they'd want to retain these guys. Aren't they a big part

of why Delphi is in the dumper? I mean, they sure as fuck haven't done much to show why the deserve all this money, have they?

[patdem]

2. ONLY in America! They say 1/2 their 'salary'..but yearly? monthly? weekly

? They do not mention that! Workers when a bonus is 1/2 salary it is usually a monthly or weekly salary. Of course I KNOW it is 1/2 annual..or it would not be an issue at all. :grr: did I say :grr: I meant to say :grr:

[OneBlueSky]

3. criminal . . . absolutely criminal . . . and from a court! . . . n/t

[VegasWolf]

4. Yes, reward the very executives that drove the company into

bankruptcy!!! Make sure that they don't leave the company!!! Brilliant!!!!

:sarcasm:

[RufusEarl]

5. A link to Judge Drain, he's a Bu$h appointee

This link is to his bio.

http://www.nysb.uscourts.gov/judges/rdd.html

[Bozita]

6. His name really fits his ruling.

The whooshing sound you hear is the shirts from the backs of the Delphi workers being sucked down the toilet.

[fasttense]

7. What a perfect Alito type decision. Reward a bunch of incompetent morons

[Kagemusha]

9. This judgment just strikes me as weird.

I dug deeper into the article after my original post and wiped it out. Here's the part I can't understand: Judge Drain basically is saying, these bonuses do not jump out as improper if viewed on their own, if you disregard the company being bankrupt.

...

But the company IS bankrupt.

So I don't understand it at all.

[phoebe]

11. that's why foreign companies also file bankruptcy here- bosses keep assets

even if they are forced to resign..mentions said judge

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/02/20/ING31BD3C01.DTL

[depakid]

10. Incredible

The US has truly gone Lewis Carroll....

Alice would be right at home here.

[Bozita]

12. Why is this not followed more closely? This is the RAPE...

... of America's middle class.

[bleedingheart]

13. Incompetent executives rewarded...what sweet irony..

the company is bankrupt the employees are getting the shaft and yet they want their bonuses....

[Ilsa]

14. My husband told me he'd be going postal on them if he worked there.

This is the msot absurd thing I've ever heard of. I think I heard they have dismantled the employees' pensions and everything?