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

Feeling the force of falling endowments

A number of Ivy League universities – including Yale, Cornell and the University of Pennsylvania (Penn) – are directly feeling the affects of the negative performance of their endowment funds, and are being forced to cut operating budgets for the 2009/10 financial year. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

SWFs experience 18 per cent growth amid global downturn

Despite recent investment losses, sovereign wealth funds (SWFs) collectively grew by 18 per cent in 2008, bringing the sum of assets held by the vehicles to US$3.9 trillion, a report from International Financial Services London (IFSL) found. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Giant Texas plan defers performance pay for execs

Chief investment officer of the US$81 billion Teacher Retirement System of Texas, Britt Harris, has offered to forego an estimated $167,935 in performance incentive pay for 2008. At the most recent board meeting, the TRS board accepted Harris’ offer and also voted to defer all remaining investment division performance pay until the fund experiences a

US endowment slams consultants

The $4 billion Claremont University Consortium (CUC) has criticised the service small endowment funds in the US are receiving from their investment consultants, labelling the solutions as “cookie cutter, boilerplate answers”. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Full transparency of big hedge fund positions from now on: AIMA

The peak body for the global hedge fund industry, the Alternative Investment Management Association (AIMA) has backed a proposal mandating the full transparency and disclosure of ‘stematically significant’ positions and risk exposures held by hedge funds to their national regulators. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Markowitz has plan for gaining insights into complex instrument

At the age of 82, modern portfolio theorist, Harry Markowitz still has a lot to say about the state of play in investment management.

Previous