Delphi Proposes Bonuses to Executives
Tuesday, October 11, 2005
(SNN Detroit) Bankrupt auto parts supplier Delphi Corp plans to offer executives cash and up to a 10 percent stake in the company after reorganization. It is feared that without massive bonuses, the executives that have run the company into the ground might not stay to run the company.
Delphi workers are upset by the announcement
However, many Delphi workers are upset by the announcement. Perhaps this is because they don’t understand the importance of executives, or perhaps it is because the company has asked them to take a huge cut in wages. One thing is certain, the company will never be able to attract executives unless they pay them enough not to live primarily in Michigan.
As an additional incentive for executives to stay, Delphi has greatly expanded severance packages for top executives. Also, if the company comes out of bankruptcy or is sold executives would receive cash bonuses of 30 percent to 250 percent of their salary, totaling $87.9 million.
UAW is trying to stand in the way of Delphi’s success.
Unfortunately, the shortsighted, business hating UAW is trying to stand in the way of Delphi’s success. The UAW is upset by the massive employee pay cuts that have been demanded by the executives and the new employee health program that would allow Delphi executives to harvest employee organs.
In addition to the UAW, some shareholders say that the Delphi executives actually have gone too far and that they should turn control of the company over to outsourced CEOs from India, who could loot the company for a much lower wage.
They make the argument that the government should be run by business people. Now they have it and this is what we get. The truth is, we need more government in our government. The reason they keep working to downsize the government is so they can continue to fuck us all. They are, truly, assholes.
Can we make VP Cheney the CEO of Delphi, to that he gives Delphi no-bid contracts? Perhaps in exchange for some stock options?
What this country really needs is a Federal Golden Parachute Act. If you are making 20,000,000 a year running your business into the ground, imagine the impact if you lose that income? It is hard for most Americans to imagine tragedy at that scale. What can they lose? 30K? Peanuts!
God Bless Executive Pay (to the tune of God Bless the USA)