CHICAGO -- Delphi Corp., suffering through investor concerns over accounting problems, on Monday said its board has granted retention payments and restricted stock awards to top executives.
Delphi failed to meet performance targets for 2004 and will make no cash payouts on annual and long-term incentive plans to its 600-member executive group that includes executive officers, the Troy, Michigan-based parts supplier said.
Delphi last week said it may have to restate results because of accounting problems and its chief financial officer resigned under pressure, prompting ratings downgrades from stock analysts and warnings from debt ratings agencies.
The recognition and retention grants will be paid in four equal installments starting on Sept. 1 and ending March 1, 2007, as long as the officer remains an active Delphi employee on the payment date, Delphi said.
The restricted stock awards, set March 1 under Delphi's long-term compensation plan, are not based on performance and vest in the third, fourth and fifth year following the grant.
The restricted stock unit grants were unchanged from 2004, except for an increase to Rodney O'Neal for his appointment as Delphi's new president and chief operating officer and John Sheehan for his appointment as acting chief financial officer.
Chief Executive and Chairman J.T. Battenberg, who plans to retire later this year, would receive $425,500 on each of the four grant dates if he remains with the parts supplier. He also received 188,550 restricted stock units.
O'Neal was awarded retention installments of $181,000 and 77,625 restricted stock units. Sheehan was granted retention installments of $37,750, 16,200 restricted stock units and a base compensation increase to $500,000.