Community | April 03, 2011 | 38 comments

Transocean Execs Get Bonuses after ‘Best Year in Safety,’ Despite Gulf Oil Disaster

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Transocean Ltd., owner of the Deepwater Horizon oil rig, awarded millions of dollars in bonuses to its executives after “the best year in safety performance in our company’s history,” according to an annual report and proxy statement released yesterday.

Eleven people were killed, including nine Transocean employees, in the April 20 explosion and collapse of the rig, which gushed crude oil into the Gulf of Mexico for 86 days.

“Notwithstanding the tragic loss of life in the Gulf of Mexico, we achieved an exemplary statistical safety record as measured by our total recordable incident rate and total potential severity rate,” Transocean states in the filing. “As measured by these standards, we recorded the best year in safety performance in our Company’s history, which is a reflection on our commitment to achieving an incident free environment, all the time, everywhere.”

Transocean President and Chief Executive Officer Steven L. Newman received about $4.3 million in cash bonuses and stock and option awards. With other compensation—such as pension increases and cost of living, housing, and automobile allowances—Newman earned $6.6 million in 2010, almost $1 million more than in 2009.

His base salary, $900,000 in 2010, will increase 22 percent to $1.1 million in 2011.

Transocean built and staffed the Deepwater Horizon. It was leased by BP, which denied most executives bonuses in 2010. In justifying the bonuses, Transocean cites the increased burden on executives of responding to the spill:

Although in 2010 we made significant progress in achieving our strategic and operational objectives for the year, these developments were overshadowed by the April 20, 2010 fire and explosion onboard our semi-submersible drilling rig, the Deepwater Horizon, off the Louisiana coast that resulted in the deaths of 11 of our colleagues, including nine Transocean employees, and the uncontrolled flow of hydrocarbons from the well for an extended period (the ‘‘Macondo Incident’’). As a result, many of our senior executive officers… dedicated a significant portion of their time in 2010 following the Macondo Incident to responding to the needs of the victims’ families, coordinating the involvement of additional resources required to stem the flow of hydrocarbons, including drilling rigs and personnel to drill relief wells and other operations as requested by the Unified Area Command, cooperating with the numerous federal, state, and local reviews and investigations into the incident, overseeing our internal investigation of the incident, and managing other demands stemming from these activities, in addition to performing their normal responsibilities.


Steven L. Newman
In the proxy, Transocean’s directors also ask shareholders to shelter “the Board of Directors and the executive management From liability for activities during fiscal year 2010.” The company is being sued by some shareholders for failing to monitor risk leading up to the spill.

Transocean contends it has no liability:

It remains our view that Transocean is contractually indemnified against all claims stemming from the environmental and economic impacts of the hydrocarbons spilled into the Gulf of Mexico from the Macondo well after the sinking of the Deepwater Horizon.”

http://blogs.forbes.com/jeffmcmahon/2011/04/02/transocean-bonuses-deepwater-hori...
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38 comments // Transocean Execs Get Bonuses after ‘Best Year in Safety,’ Despite Gulf Oil Disaster

  • COMMONSENSEFORCOMMONGOOD_COM
  • Milieu
  • deane
  • PzLuvHappeniz
  • KB723
    • 0
      KB723 [removed]  
    • It remains our view that Transocean is contractually indemnified against all claims stemming from the environmental and economic impacts of the hydrocarbons spilled into the Gulf of Mexico from the Macondo well after the sinking of the Deepwater Horizon.”

      "What a Crock of Shit!!!!"

    • 2 years ago
  • PzLuvHappeniz
    • +1
      PzLuvHappeniz  
    • I don't get it, WHY DO THEY NEED MORE MONEY?! These people make more money than some third world nations and then they decide they deserve a little more for good behavior. Give it to your employees, a health insurance program, a charity, or shove it up your asses

    • 2 years ago
  • KB723
  • Leen61
    • +3
      Leen61  
    • Transocean is just another example of a multi-national corporation operating inside their own bubble of consciousness. Nothing that happens outside their boardrooms is reality for them. They look at their back-slapping reports and lives turn into just numbers on a printed page. Deaths blend into just blips on their annual report that need to be buffed out before it gets to the stockholders' meeting. Employee's lives don't translate into their bottom line other than how they impact the "overhead". Today's corporations are as heartless as they've always been, but in the age of the neo-conservative rise to power, we might as well be living in 1911.

    • 2 years ago
  • bluestranger
    • +2
      bluestranger  
    • Don't take any bets that these heartless bastards will spend any of their blood bonus' vacationing on our beloved Gulf. Neither will they donate any to the families of those who lost their lives on the rig. If you needed more proof of the upside down priorities of the corporate world, look no further.

    • 2 years ago
  • PeteLeS33
  • gump
    • +1
      gump  
    • PeteLeS33:

      Murder is money. No profit without makeing a killing somewhere. I believe many dynasties have started with a gun or a knife in an alley just waiting for easy targets to walk near.

    • 2 years ago
  • KB723
  • chew_chew
  • xhuffpo
    • +4
      xhuffpo  
    • This is typical of the industry, BP has had lots of problems at this level and worse for years and touts its "safety performance"
      Largest fines in OSHA history went to BP for ignoring issues at a refinery in Texas, that then blew up killing many people. This is when they were under order to correct major problems, some of which were a contribution to the explosion at the plant.
      The whole time BP said it was focused on safety.

      To the corporations safety is making enough money to pay for the death and destruction not prevent it.

    • 2 years ago
  • Leen61
    • +3
      Leen61  
    • xhuffpo:

      There was a story posted last week that I commented on, in regards to rumblings from Holder's DOJ that they were supposedly still considering criminal charges against BP for the disaster. This was what my comment to that. I think it is still appropos to this story.

      If this truly comes to pass, I will applaud the DOJ and Eric Holder. Unfortunately, at this point I am cautious and skeptical. Holder's track record is far from stellar when it comes to holding any corporations accountable civilly or criminally. I've got to believe that this is some sort of leverage move on Holder's part, but when it is all said and done, without much teeth. I was privvy to a lot of information in regards to the BP oil spill as during the time the spill was at the center of most news cycles, I was a regular on a blog associated with a progressive radio show featuring Bobby Kennedy Jr. and a partner with the law firm that were the lead attorneys representing the Gulf fishermen, Mike Papantonio, a frequent guest contributor on Ed Schultz' radio and TV program. In the first few months of the disaster, it was a weekly subject on the show until it gradually faded from even their radar. After the initial hopefulness and promise of the victims of the spill receiving financial justice, that too faded. Papantonio initially hailed the deal that Obama brokered with BP to put $20 Billion into escrow to cover victims loss of their livelihood, until he realized that the $20 Billion would be a drop in the bucket before it was all over and the $20 Billion would never ever fully find itself into the hands of deserving victims. You might recognize the fellow who BP HIRED to dole out the cash to the victims HE decided were worthy of a settlement, Kenneth Feinberg, the same Kenneth Feinberg who was so generous with the 9/11 victims' families settlements. NOT. The litigations that were set to go to trial, were supposed to be delayed until this month until all the required due diligence was performed and BP could be sufficiently nailed to the wall. As far as I know, there's still been nothing but crickets in regards to those cases going forward too. So, to say the least, I don't hold out too much hope that this story will have any happy endings for anyone decimated in the Gulf or any accountability for the law breakers who proliferate this sad saga.

    • 2 years ago
  • KB723
  • Leen61
  • JanforGore
    • +5
      JanforGore  
    • If this was their best year I would hate to see their worst. This is absolutely disgusting. I also read a story that a couple of their employees are refusing to testify at a hearing...

    • 2 years ago
  • Schnookums
    • +4
      Schnookums  
    • I like that the article is dated April 2nd but was, in fact, released and posted on April 1st. From a PR perspective, I would have gone with the April 1st date.......most probably would have dismissed it as a (bad) joke.

    • 2 years ago
  • Steamed_N_More
    • +7
      Steamed_N_More  
    • Safety performance was awarded for protecting investments, not workers or environment. There is little, if any, human interest in business. Just capital interest. By the way, bonuses are up for a lot of CEOs.

    • 2 years ago
  • madammarsh
    • +8
      madammarsh  
    • How many people have they killed in the past, if this is such a vast improvement? Imagine what would happen if some safety 'oversight' at a high school resulted in a natural gas explosion that killed some students or staff. Would the principal and the school board get juicy bonuses for their stress? I'm guessing not.
      To the shareholders bringing the lawsuit, I hope it works, though it might be best to put any proceeds from the suit into a college fund for the children of the dead, or something similar.

    • 2 years ago
  • chief_longhair
    • +7
      chief_longhair  
    • this is another perfect example of what is wrong with our country,,, these corporate lords have no since of shame, they are the rulers,,, we are but peasants,, they really believe that they are right and are worthy because,, after all they are lords,,, so whats next?? maybe,, jus primae noctis,,, why of coarse,,, the lord of the manor should share the wedding bed with his peasants' brides....... good grief,, these parasites make me want to puke........

    • 2 years ago
  • gump
    • 0
      gump  
    • chief_longhair:

      Good on you. Ocasionally in the past the powers that be have made motions toward outlawing peasent sex entirely . Unless granted a special permit first. Somrting like the attempt at eugenics in USA. after world war one. Read a book called MAKING MEN MORAL My uncle Jack was locked up most of his young short life because of that. They le t him out long enough to die in the army fighting germans in France. Last anyone in the family saw of him he was dead in a ditch along the road with hundreds of other casualties that my dad said always seemed to be beside the road. Dad was the gunner in a halftrack that was part of an armored colum that advanced into Germany and destroyed alot of towns and villages with all the civilians still in them. Poor dad spent the next 50 years just waiting to die himself. He never fully recovered or escaped the memory of all the wemon and children he saw when his halftrack was security accompaning the negotiators and inturpreters demanding full immediate cooperation. If they did not seem to get enough cooperation the colum used artillery to level the town. The next day the collum moved on and there was no town left. But anyway, when dad saw jack in the ditch Jack had sargents stripes on his uniform and the family had been told that jack was no good so often by authorities that dad thought his brother could not make sargent . He hesitated to long . Never did stop for his one and only dead brother in the ditch . When Jack was young there was an attempt to reduce "undesierable" pregnancies by simply locking up young people deamed poor or otherwise undesirerable so they could not have babies. Just read the book. MAKING MEN MORALE. It was used as part of some school coarses at arizona state university. My point is that they respect no boundaries . They are like farmers raising chickens. no respect for us peasents. Just chickens to them. Chickens will not get a nywhere by protesting in front of farmers. I have to stop ranting.

    • 2 years ago
  • Angeliron
  • BenjaminDover
  • nanac
    • +7
      nanac  
    • It's a shame, but these crooks play by their own rules.They are literally getting away with murder..They get a slap on the back, and a multi-million dollar bonus for contributing to one of the biggest oil spill in American history..

    • 2 years ago
  • uShine
  • Schnookums
  • Wetdog
  • uShine
  • Schnookums
  • bike10
  • Seauvan
  • ArchDruid
  • Wetdog
    • +4
      Wetdog  
    • ArchDruid:

      ABSOLUTELY RIGHT!!!!!

      Have you noticed how the "safety standards" keep changing as the situations get worse and worse.

      "................is no threat to human health........"

      "................will degrade and disappear..........."

      ".................is a freak, one time event that could not possibly happen again......"

      blah, blah, blah....................go back to sleep.

      It seems to me that, other than the terminologies inserted into the blanks-------we are hearing exactly the same newscasts about the nuclear reactors in Japan that we heard about the oil spill in the Gulf of Mexico.

    • 2 years ago
  • gump
  • Wetdog
    • +9
      Wetdog  
    • HOLY COW!!!!

      What kind of record did they have BEFORE that this is an improvement?

      Look at those bonuses!!!!

      I have seen reports before that Transocean made enormous profits from insurance pay outs on this disaster.

      Apparently so.

    • 2 years ago
  • twinite

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