Delphi Exec Bonuses: $216M
Professor Robert M. Daines is quoted in this executive compensation story in The Detroit News about executive bonuses that are seen as "excessive" in the wake of bankruptcy:
Delphi Corp. wants court approval to pay its top 560 executives at least $215.5 million in bonuses and incentives in 2008 after the company emerges from bankruptcy.
Robert Daines, a Stanford University law professor and expert on executive compensation, said incentives are necessary to help companies compete. "You have to beat the bid of what they would make if they went somewhere else," he said. He noted that private equity "has been very active in richly paying executives" -- and private equity has been active in the auto sector.
Delphi's compensation experts compared pay to 18 peer companies, including Visteon, TRW Automotive, DuPont, Coca-Cola, Goodyear Tire, Lear, Best Buy, Pepsico and Federal Mogul, according to its filing.
Daines said the question is, are those companies a fair cross-section compared to Delphi.