Delphi bonuses...Detroit News article

[RJB]

I can't believe this, and it's no wonder the workers that got paycuts and buyout are furious. I would be too if I worked my fingers to the bone and then agree to a paycut and then find out the higher-ups want to pat themselves on each others backs and get a fat payout!!

Delphi seeks court OK to pay up to $37 million in executive bonuses

David Shepardson / Detroit News Washington Bureau

WASHINGTON -- Delphi Corp. will seek court approval to pay its top 400 executives between $20.2 million to $37.6 million in bonuses through the end of the year, but hasn't disclosed how much its executives might get after the company exits bankruptcy protection.

Troy-based auto parts supplier Delphi has previous received the court's OK to pay its executives bonuses since it filed for bankruptcy protection in October 2005. This is the fourth such request. Delphi has said the bonuses are necessary to remain competitive and retain key white collar personnel.

This request covers between July 1 and Dec. 31 and is identical to three previous requests. Delphi has awarded more than $60 million in bonuses to executives since entering bankrutpcy. Its board of directors held a meeting July 16 to approve the program.

U.S. Bankrutpcy Judge Robert Drain will hold a hearing on the Delphi request Sept. 27.

But the bonuses have drawn the ire of Delphi's unions, who note their members have been forced to accept pay cuts and that the company has shed more than 20,000 union employees. Delphi also plans to close 25 of its 33 U.S. facilities.

John Sheehan, Delphi's chief restructuring officer, said in an interview last week that Delphi would disclose its post-bankruptcy bonus program in October. Initially, Delphi had envisioned giving its top 500 executives up to 10 percent of the company's stock and $88 million in cash when the company exits bankruptcy -- a package that could be worth

[Windy-57]

Yeah, I can defend the first bonus payout that is directed at keeping management talent, but I honestly don't understand what this is all about? I could even understand giving out a few bucks for hard work or long hours put in during a tough bankruptcy period, maybe $5k per person, but that's about $50K - $100K per person...that's just wrong, hopefully it won't go through.

Edited September 13, 2007 by Windy-57

[ellives]

It's business. Supply and demand. I agree they should be sharing the wealth with the rank and file through bonuses too.

[RJB]

Yeah, I can defend the first bonus payout that is directed at keeping management talent, but I honestly don't understand what this is all about? I could even understand giving out a few bucks for hard work or long hours put in during a tough bankruptcy period, maybe $5k per person, but that's about $50K - $100K per person...that's just wrong, hopefully it won't go through.

I agree too it is good to keep your talent pool instead of losing it, and it does not equate to that much when divided out. But again, the peons get shafted. History always shows the people low on the totem pole do a ton of work and get hardly if any credit while the people on top take the credit and bask in the glory.

[ellives]

I agree too it is good to keep your talent pool instead of losing it, and it does not equate to that much when divided out. But again, the peons get shafted. History always shows the people low on the totem pole do a ton of work and get hardly if any credit while the people on top take the credit and bask in the glory.

It's the way of the world. If we all want the big bonuses than we should all be Vice Presidents.

[AxelTheRed]

That's bull$h!.

[CARBIZ]

It's the way of the world. If we all want the big bonuses than we should all be Vice Presidents.

I busted my ass for 11 years to build my company, but bigger competitors with deeper pockets kept taking pot shots at me until I realized it was no longer worth it and I moved on. Capitalism is great, isn't it?

If companies stumble and fall, they have to hire big talent to earn the trust of the banks and creditors: do you think that 'talent' is free? I agree the optics suck, but those workers wouldn't still have their jobs if some one hadn't figured a way out of this.

If everyone wants to earn six figures, then they'd better get their asses back into University and get smart.

Or become a drug dealer.

[the_yellow_dart]

If everyone wants to earn six figures, then they'd better get their asses back into University and get smart.

Good luck finding six figures form a University degree alone.

Maybe with about 8 years experience...

[hyperv6]

If you want that kind of money it taker not only a University but a good one, It also takes in many cased more than 4 years. And experience is pricless.

The only thing I disagree with is sometimes they pay an idiot to take over. If a company is led well and leaders are making money they give them what it takes. If they are incompitent get them out of the office.

Goodyear tire had en idiot for a few years that nearly killed them but he leader they have now is worth his weight in gold.

If it was so easy running a large company we all would be doing in the real workd and not just here on the internet.

The grass is always greener over the spetic tank ot to a union rep.