Delphi CEO leads voluntary pay cuts, reducing salary to $1 per year throughout bankruptcy

By Caroline Salls

Pittsburgh, Oct. 17 - Delphi Corp. chairman and chief executive officer Steve Miller will reduce his salary to $1.00 per year effective Jan. 1 as part of company-wide voluntary executive compensation reductions, according to a company news release.

Miller's salary will remain at $1.00 until Delphi emerges from Chapter 11 bankruptcy.

In addition, the Delphi officers who were at Delphi when Miller joined the company volunteered to waive 10% of their base pay - 20% in the case of president Rodney O'Neal. These changes will also take effect Jan. 1.

"In addition to my annual salary of $1.00, I will continue to receive zero bonus, zero severance, zero pension plan and will have no other similar entitlements whatsoever," Miller said in the release.

"While I remain concerned about the below-market compensation paid to many of our key executives, Delphi's transformation message must be unambiguous and marked indelibly by the commitment of Delphi's leadership."

Delphi said the balance of compensation arrangements for its executives would be decided by the U.S. Bankruptcy Court for the Southern District of New York at the company's Nov. 29 omnibus hearing, when the company's key executive compensation program motion is scheduled.

As previously reported, the key employee compensation program includes a fully developed exit plan designed to focus the company's 486 executives on achieving benchmarks and encouraging them to complete an efficient and successful reorganization.

The program includes an annual incentive plan, an emergence bonus plan and a pre-bankruptcy severance plan.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8. Its Chapter 11 case number is 05-44481.

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