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

CalPERS: a new framework of economy

CalPERS has adopted 10 preliminary investment principles following a board offsite in July, but a number of topics, including the role of active management, are still under debate ahead of the September board meeting that is the deadline for the principles’ adoption. The $266-billion Californian fund began the process for establishing investment principles in January

Social networks in the investment web

Reels of financial data and analysis coupled with the occasional piece of market gossip or personal hunch are the time-honoured tools investors rely on in building an active portfolio. More recently, an element of sustainability or corporate governance analysis has tried to muscle into the process. Soon there will be another revolutionary option complementing financial

Eijffinger’s decade of financial repression

Financial repression will define the economic landscape for at least another decade, according to professor of financial economics at Tilburg University, Sylvester Eijffinger, which has serious implications for institutional investors. Eijffinger, who also is also a visiting professor at Harvard, sits on the monetary experts panel of the European Union and is an adviser to

Is reviving Europe a suspended apparition?

Getting Europe’s swelling institutional capital to support long-term projects that could benefit its uninspired economies was an idea that sent heads nodding around the continent as it suffered the brunt of the financial crisis. Get pension, insurance and foundation money into where it is most needed with the attraction of reliable long-term cash flows and

Let’s talk about underfunding

Even using the assets of the pension plan was not enough of a leg-up to save the city of Detroit from bankruptcy. As the last words in the song Put your hands up for Detroit by Fedde Le Grand say, it is system shutdown. The fiscal demise of this city may be a lesson for

Johnson urges pension simplicity

There is a David-and-Goliath feeling to the battle Michael Johnson, a research fellow at the London-based think tank the Centre for Policy Studies, is waging against the pension industry. His research, which lays out the case for radically simplifying all aspects of the United Kingdom’s pension sector, has earned him a reputation as a maverick.

Previous