April Fools: Gulf Disaster and Exec Bonuses

I just came back to the Rust Belt (or what’s left of it these days) after spending a few days Inside the Beltway where April Fools’ jokes appear to be commonplace throughout the year. Of course, we’ll see how many are laughing at the end of this week if Congress can’t get its act together and agree on a spending bill to fund the federal government throughout the balance of this year.

So in the spirit of April Fools — I’m not sure if this story is a joke or not. But I saw it on The Huffington Post: “Transocean Execs Get Bonuses for Best Year in Safety, Despite Gulf Disaster.”

Transocean Ltd. gave its top executives bonuses for achieving the “best year in safety performance in our company’s history” – despite the explosion of its oil rig that killed 11 people and spilled 200 million gallons of oil into the Gulf of Mexico.

The company said in a regulatory filing that its most senior managers were given two thirds of their total possible safety bonus.

Transocean noted “the tragic loss of life” in the Gulf when the rig operated by BP PLC exploded last April. But it said the company still had an “exemplary” safety record because it met or exceeded certain internal safety targets concerning the frequency and severity of its accidents, according to the filing with the Securities and Exchange Commission on Friday.

Safety accounts for a quarter of the executives’ total cash bonuses. The total bonus for CEO Steve Newman last year was $374,062.

According to calculations by The Associated Press, the total value the company assigned to Newman’s compensation package was $5.8 million.

That figure includes an $850,000 base salary – a 34 percent increase from the prior year; perquisites of $622,057, which includes housing and vacation allowances, among other things; and the $374,062 bonus. Also included in the figure are stock options valued at $1.9 million and deferred shares valued at $2 million when those awards were granted in March 2010.

Transocean’s Deepwater Horizon oil rig explosion on April 20 in the Gulf of Mexico killed 11 workers and set off the largest offshore oil spill in U.S. history.

A commission appointed by President Barack Obama earlier this year said the explosion was caused by a series of time and money-saving decisions by Transocean, BP and oil services company Halliburton Inc. that created an unacceptable amount of risk.

In the regulatory filing, the company said its bonuses were appropriate as a way to recognize its executives’ efforts in “significantly improving the company’s safety record” and implementing a new internal planning system.

LOL.

Somebody, please, tell me this is an April Fools’ joke.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s