Judge Slashes Delphi Executive Bonuses by 80 Percent

Responding to objections by IUE-CWA and the Auto Workers to Delphi's proposed management compensation plan, bankruptcy Judge Robert Drain drastically slashed Delphi's proposed $87 million in cash bonuses for executives 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."

Recognizing that Delphi's workers have suffered greatly in the company's restructuring, Judge Drain established the amount for the award to executives to require some "equivalence of sacrifice."  It was the largest reduction in proposed executive compensation ever imposed by a bankruptcy court, said IUE-CWA's attorney Tom Kennedy.