20 top officials/executives at Delphi are taking a 10% pay cut, and Steve Miller, the CEO is working for $1 per year, starting Jan 1st, until Delphi is out of bankruptcy.

I've seen so much whining from the UAW about the beefed up severence package for the Delphi top brass. Many of them have it confused, and think that the Delphi execs gave themselves a bonus. They only get the severence package if they are canned. I don't like what the execs did by beefing up the severence package, but it's getting blown way out of proportion.

Steve Miller did receive a $3 million signing bonus when he joined Delphi, but that's par for the coarse when you are asked to be a CEO of such a large company. Anyway, the local UAW 699 rep said that he didn't think that the pay cuts for the execs was all too altruistic. (unselfish) He said that they only took pay cuts because because of the UAW.

Aarg. So now working for $1 per year still isn't good enough, and the UAW is trying to take credit for the execs taking pay cuts. What's next? All white collar workers should work for free? Thay've already had frozen salaries, no 401k matching, reduced health care...

Just thought I'd rant.

Dan

 

I did post that, I just didn't make a new thread but good find regardless.

 

Oh yeah, I just saw your post, the part about Steve Miller. His salary is $1 until they emerge from chapter 11 though, not when they show profitability.

Dan

 

Interesting, I could have sworn it said till profitability. Wish I still had that piece of paper.

 

Yay, his base salary is $1 but he received $3 million dollars in July. I could probably make it a few months on that.

And since you are ranting you shoud mention that they didnt decide on the paycuts until the union complained and the board realized how stupid it looked to ask the employees to take almost a 66% paycut while enriching their own compensation.

Most of the top 20 exec's earn somewhere close to the $1million dollar mark according to the article I read. Take away 10% and that still leaves them earning $900,000. i dont know about you but I imagine if I clipped coupons and watched for the Sunday sales paper, I might could live off $900k.

Now on the other hand, they are asking their employees to live off about $23k year($11/hr), not much above the poverty level.

Those 10% cuts are window dressing.

Glenn Reynolds, an analyst with Credit Sights, said Mr. Miller had little choice but to relent. "I think he had to take a step back and try to look a little bit sympathetic," Mr. Reynolds said.

Brian Johnson, an analyst at Sanford C. Bernstein & Company, said the decision by Delphi executives to accept lower compensation was merely a gesture to damp the criticism. "It doesn't materially change their earnings power."

 

Oh yeah, his $1 salary doesnt start until January 1st. So he'll still pull in another $375k this year.

 

Well, I guess it doesn't matter that they took pay cuts. Since it doesn't matter, they may as well increase their salaries by 10%, because it doesn't make a difference, right? Sheesh. So the UAW pressured the execs to cut their salaries? I haven't seen any examples of this. It sounds like the UAW trying to take credit for something done right that wasn't their decision.

People get payed according to their experiance and marketability. If it took $3 million to get Steve Miller over to Delphi, then that's what he deserves. You sound like a socialist. I guess we should all make the same wage, and be happy. He's giving up 1.5 million a year. Eh, chump change right? I don't think so.

Remember that the salary workforce already has had a lot of cut backs, as I mentioned. They are getting paid competitive wages for doing work similar to other white collar workers in the automotive industry. The UAW workers at Delphi, as mentioned, are making double what others in the market are making for performing similar jobs at automotive suppliers.

Those execs get paid that much because that's what their position in a company like Delphi, or other Fortune 50 companies demand. You scoff at a 10% pay cut, yet the UAW hasn't taken ANY cuts yet. I'm sure they will, although I truelly think the $10-12 is pretty low ball. Somewhere between $15-20 will be my guess.

By the way, you state that the execs enriched their own compensation. When did this happen? I didn't hear of any pay raises or bonuses for going bankrupt lately.

The UAW is archaic, disruptive, and is no longer needed in my opinion. Our government has fair labor laws that protect workers, so that problems don't occur that spawned the unions in the first place. The UAW workers have many fine people working for them, and also many not so fine people. I've seen it first hand, since I have been in dozens of Delphi plants, all over the world. I was a GM/Delphi engineer for 5 years until I took a better job. I wish the best for Delphi and GM. I'm very loyal to both companies, and want to see them come around.

Dan

 

Maybe your paper reported it differently. That could be. I double checked mine, and it states once Delphi is out of Chapter 11.

Dan

 

I would like to see the 20 top officials/executives be relieved of bonuses and only work on base salary until a profit is shown. I'm sure that would motivate some people and get out the people there just looking for a buck.

 

Just for giggles I'd like to see what the top couple of rungs of executives at the UAW are making for wages, benefits & bonuses.

 

I totally agree, but I don't think that they are taking bonuses at this time. (I could be wrong) I can't imagine that they would, or that they are currently taking bonuses given the corporations situation. If they do, shame on them.

Dan

 

dont forget stock options, thats where the real moneys at.

 

Exactly...the CEO of my bank makes "only" $650,000 per year. But what do the SEC records show he received for stock options last year?? $16.9 MILLION. Don't ask how I feel about that when I consider how even the underwriters around here get peanuts

 

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