Delphi Giving Executive Bonuses??

To be filed under WTF??? in the Naybob Zone...

Bankrupt auto parts supplier Delphi Corp. plans to offer executives cash and up to a 10 percent stake in a reorganized Delphi as an incentive to stay, while seeking massive concessions from hourly workers. Nothing new here.

"As a result of the debtor's financial performance, many of the company's incentive-based compensation programs failed to provide (its) salaried and executive work force with total compensation that is competitive with the industry norm," Delphi said.

Really??? Delphi should have paid them what they were worth? The fact that Delphi had to file bankruptcy tells me that they were worthless in the first place. Why are they being asked to stay?

Delphi on Saturday filed the largest bankruptcy in U.S. automotive history, promising substantial U.S. job and plant cuts after failing to obtain wage and benefit concessions from the United Auto Workers or financial aid from former parent General Motors Corp.

The bonus proposal comes on top of Delphi's announcement Friday that it had sweetened severance packages for 21 top executives, a move the UAW said made the "bitter pill" of the company's bankruptcy filing Saturday all the more disappointing. Oh boy, is that an understatement and typically feeble from today's union chieftains who are nothing short of emasculated.

Under its proposed key employee compensation program, 486 U.S. executives would receive cash bonuses of 30 percent to 250 percent of their salary, totaling $87.9 million, upon Delphi's exit from bankruptcy or sale of the company. Say what? Only 30 to 250 percent? Only $88 Million? Why with their track record, they should be worth alot more in the job market, don't you think?

For example, President Rodney O'Neal would get a total cash bonus of $2.75 million, based on a $1.15 million average salary. Some 464 executives could earn bonuses ranging from $50,000 to $475,000, based on salaries of $120,000 to $450,000. WTF???

Chief Executive Steve Miller would not participate in the annual incentive or emergence plan, but would be eligible for a discretionary bonus at the end of his tenure as CEO.

What a guy, eh? But he probably went along with doling out $88 Million to a pack of corporate clowns who I would not hire to even wash my car, let alone provide parts for it. You drive a company into bankruptcy through ineptidude, but you get a bonus??? Is it just me or is this world turned ass backwards and upside down? Again WTF???

This is another sterling example of corporate & government cronyism, nepotism, incompetence and is a testimony to the fact that there is NO ACCOUNTABILITY in the system whatsoever.


MSN Reuters

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