'Fairness Prevails' as Judge Slashes Bonus Program for Delphi Execs by 80%
January 22, 2008
NEW YORK
As a result of IUE-CWA and other union objections to Delphi's proposed management compensation plan, Judge Robert Drain has slashed Delphi's proposed $87 million in cash bonuses to $16.5 million.
"After so much sacrifice by Delphi's frontline workers, it is gratifying that the judge recognized the overwhelming greed in throwing huge cash payments to Delphi's executives," said IUE-CWA President Jim Clark. "It is a very symbolic victory for our members. Fairness prevails with this decision."
The money will be split among some 500 executives, including Chairman Steve Miller and CEO Rodney O'Neil, who had been targeted for $8.3 million and $5.3 in bonuses, respectively.
Judge Drain indicated that he thought Miller was owed the salary he had foregone – roughly $6.7 million. The judge also stated that the Delphi Strategy Board has received above market compensation and the company's compensation committee should take that in account in deciding how to divvy up the much reduced pot of cash.
