IUE-CWA Blasts Delphi Executive Bonus Plan

IUE-CWA reacted angrily to the revelation in a Jan. 2 court filing of Delphi's intention to reward Chairman Robert S. Miller with an $8.3 million bonus – previously undisclosed in the company's executive compensation plan -- for leading the auto parts maker through bankruptcy.
 
"This is just another pathetic example of the U.S. system feeding ever increasing corporate greed," said IUE-CWA President Jim Clark. "Many working families have been forced into personal bankruptcy while corporate executives reap great personal windfalls on the backs of their employees."
 
IUE-CWA Automotive Conference Board Chairman Willie Thorpe said, "It's totally ridiculous, anybody getting that kind of money after what they did to our people."

In addition, the company's Chief Executive Officer Rodney O'Neal stands to gain a $5.3 million cash bonus and up to $10 million in stock options when the company leaves bankruptcy, expected in the first quarter of this year. He is also set to receive $1.5 million in salary and will be eligible for bonuses of atleast 125 percent of his salary, or $1.9 million annually. Long-term incentives for O'Neal included up to $6.7 million in restricted stock and stock options.

Miller came to Delphi in June 2005 for a salary of $1.5 million and a $3 million bonus. In 2006, the company's first full year in Chapter 11, he gave up his annual salary and said he would work for $1 per year until the company leaves bankruptcy. He handed off the CEO title to O'Neal in 2007 and plans to leave Delphi when the reorganization is approved.

IUE-CWA agreed to hourly pay cuts from about $27 to $16.50 an hour and to allow the company to hire new workers for about $10 an hour. About 3,130 Delphi workers took retirement or buyout payments to leave the company, and Delphi closed several plants.

The company has continued to lose money throughout the bankruptcy -- $2.8 billion in 2007 alone.

The bonus was proposed by Delphi's compensation committee and approved by its board of directors as part of the company's reorganization plan. The company's creditors are scheduled to vote on the plan on Jan. 11. Delphi is due in court Jan. 17 in New York to seek approval of the plan.

IUE-CWA will join the Auto Workers, whose members also suffered major wage, benefit and job cutbacks,  in formally objecting to the executive compensation portion of the reorganization plan, Clark said.