Delphi Execs Have Chutzpah
The Detroit News reports that Delphi has asked the U.S. Bankruptcy Court for permission to pay its top executives more than $215.5m in bonuses and incentives for 2008. Now that the autoparts maker is almost out of Chapter 11, they're looking to shell-out bonuses to 560 executives: $78m in one-time bonuses, $11.5m "one-time supplemental grants" to "compensate for changes in the new executive retirement program," $46m from a "short-term incentive program," and $80m from a "long-term incentive program." Some of the payments will be in cash and some will be in stock. Proponents of the bonuses say hey, c'mon, cut us some slack. The payouts are on par with the goodies on offer at Visteon, DuPont, Coca-Cola, Goodyear Tire, Best Buy and Pepsico– none of which, incidentally, are in bankruptcy. Shareholders and workers who had to bear the brunt of Delphi's losses are less than pleased, to say the least. Will the federal judge reward Delphi's execs for almost killing their company resurrecting the company's fortunes? Watch this space.
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The top exec's (Battenberg, etc.) that ran the company to bankruptcy are gone. It's a new game at Delphi. What would happen if Delphi brought slashed all executive salaries by 50%, brought back all the UAW at $28/hour plus benefits, and kept all the unprofitable plants open? The answer...Chapter 7.
I'd first like them to pay me for the Delphi stock losses I, and many other employees incurred due to thier criminal negilgence and malfeasance. BTW, Many of those execs are still there. Sure, I'll wait.
Investing in stock is risky. There is a class action settlement for those who lost money due to the "criminal negligence and malfeasance". BTW - None of the execs have been found guilty of malfeasance in the courts. Innocent until proven guilty, last I heard.
I lost no money in Delphi, but agree that a company emerging from bankruptcy comparing itself to industry leading profitable companies to justify large bonus payouts to executives is the definition of chutzpah. Delphi execs - you can get those bonuses when you turn a profit, and more importantly, don't have to go hat in hand to a bankruptcy court and ask for permission to pay bonuses. This is a good example of greed and temerity going hand in hand.