Delphi Relents On Executive Bonus Plan

Law360 (February 9, 2006, 12:00 AM EST) -- Responding to objections by creditors, shareholders, and rank-and-file employees, bankrupt auto parts maker Delphi said it will scratch $10.4 million from an executive incentive plan that has brought workers to the brink of a strike.

Delphi acknowledged that paying the executive bonuses now may hamper a labor deal it hopes to reach with the United Auto Workers union, which represents about 70% of Delphi’s 34,000 hourly workers.

Based on a sliding scale subject to company earnings, Delphi's new plan will pay senior managers $20.6 million in...
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