Industry News
Delphi cuts executive bonus fund further in reorganisation plan
29th January 2008
Delphi Corp. has for the second time reduced the size of the bonuses payable to its top 560 executives, by $85m to $132m, when it emerges from Chapter 11 bankruptcy in March, according to bankruptcy court documents filed last week and reported by the Detroit Free Press. The plan of reorganisation was approved by a New York bankruptcy court judge on 22nd January.
Delphi is also to freeze its production workers’ pension plans from 1st March. Unions have attacked Delphi’s executive bonus schemes, which they considered disproportionate in the light of the over 20,000 production jobs the company has cut, and their members’ agreement to reduced wage levels.
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