Delphi Corp (fka DPHI)

[tradetracker]

Delphi delays hearing on executive pay plan again

DETROIT, Dec 14 (Reuters) - Bankrupt auto parts maker Delphi
Corp. has put off for a second time a court hearing on
a proposal for a bonus plan to encourage executives to see through
its reorganization, a spokeswoman said on Wednesday.

The proposal, which met objections from unions and others,
calls for distributing about $500 million in cash and equity to
various executives, provided that they stick around through a
successful exit from bankruptcy that may cost them their jobs.

Delphi originally set the hearing for November, but moved it
to Jan. 5 after receiving numerous objections, and has now moved
it to Jan. 27, a week after an informal deadline Delphi has set
for reaching wage and benefit concession deals with its unions.

Delphi wants to allow more time for discussions with the
various parties, spokeswoman Claudia Piccinin said, declining to
provide details on the discussions.

The plan has particularly rankled unions that represent
nearly all of Delphi's 34,750 U.S. hourly workers. Those workers
would see pay and benefits cut by more than half under Delphi's
latest proposal to modify labor contracts.

United Auto Workers leaders have called on Delphi to withdraw
the executive compensation plan, and its latest proposal for wage
and benefit cuts, to show that it is serious about negotiating a
deal with the union.

The Pension Benefit Guaranty Corp., stockholders and others
have raised objections to the plan as well.

The proposal calls for incentive payments for executives
during bankruptcy. Upon a successful exit from bankruptcy,
various executives would receive about $87.9 million cash and 10
percent equity in a reorganized Delphi, or about $400 million
based on an equity value of $4 billion.

Delphi Chief Executive Steve Miller would not participate in
the program, but the company's board reserves the right to
compensate Miller at the end of his tenure as CEO.






(c) Reuters 2005. All rights reserved. Republication or redistribution of
Reuters content, including by caching, framing or similar means, is
expressly prohibited without the prior written consent of Reuters. Reuters
and the Reuters sphere logo are registered trademarks and trademarks of
the Reuters group of companies around the world.