Transocean gives bonuses for ‘best year in safety’
SAN FRANCISCO – 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.
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.
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