Deepwater execs strike oil with safety bonuses

As incongruous as it sounds, executives at Transocean Ltd – the company that owns the Deepwater Horizon oil rig which exploded in the Gulf of Mexico last year killing 11 people – have been paid bonuses for their improved safety performance.

According to a company SEC filing last week, last year was its best-ever for safety, “notwithstanding the tragic loss of life in the Gulf of Mexico”.

Executives receive 25 per cent of their bonuses based on the company’s safety performance in a given year.

Last year, they were given two-thirds of this. In 2009, the company withheld all bonuses after four deaths.

The calculation for overall safety performance is not based on deaths alone, but rather the number of “incidents” and their “potential severity”.

The number of incidents fell 4 per cent in 2010 and their potential severity fell 15 per cent.

Sponsored Content

The Deepwater Horizon rig was leased by BP, which operated the rig. Transocean blames BP for the damage.

The US Government is continuing its investigation into the cause of the explosion.

Leave a Comment

Sort content by

Bulk of pension assets still at top end

The 300 largest funds, and the seven biggest country markets, continue to control the lion’s share of global pension assets, a Willis Towers Watson study has found.

Fundamentally rewiring finance

The better aligned a society’s financial institutions are with its goals and ideals, the stronger and more successful the society will be.

Year in review

Analysing the most read stories of 2016 reveals some interesting trends. Overwhelmingly the most popular investment stories have been about fees and issues of sustainability.

Cyber, financial and climate risks

From quantum computing increasing the risk of damaging cyber attacks to towering global debt levels, pension funds are being urged to adopt clear risk strategies to manage emerging risks.

New investment culture embraces ESG

Investors are intentionally pursuing strategies that tie portfolio-level decision-making to systems level risks but they need more support in identifying opportunities for collective action.

Strength amid global turmoil

Political factors will continue to create uncertainty in investment markets, so now – more than ever – large investors need to play to their strengths.

Previous