Last Friday a bankruptcy judge approved a request by Delphi to increase severance packages for 21 of its top executives. Meanwhile Delphi's union workers are being asked to accept a pay cut from $25-$27 an hour to $9.50-$10.50 an hour, as well as reduced health care coverage with higher out-of-pocket costs. The new severance packages extends the time an exec can continue drawing salary and bonuses after being terminated or quitting for a good reason from 12 months to 18 months.
The Detroit Free Press article quotes embattled Delphi CEO Steve Miller as saying, "People fail to realize that I effectively found a way to keep my management team intact without spending a nickel," implying that no severances will be paid if no one leaves. It seems to us that the real incentive is an 18-month long paid vacation before early retirement.

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