So here is a peculiar disconnect. The multinational corporation Transocean is awarding safety bonuses to its executives for the previous year. You may recall Transocean. They were in charge of the Deepwater Horizon rig that exploded in the Gulf of Mexico last year that resulted in the deaths of eleven rig workers and not coincidentally in the the worst oceanic oil spill ever in the history of humankind. Transocean continues to run many of the drilling rigs in the Gulf of Mexico. They are headquartered in Zug, Switzerland because of the tax breaks afforded to multi-national corporations, even though the bulk of their operations are located in Texas (the Swiss HQ consists of a shared board room in an office building).
Safety bonuses…really? Here is their decision:
According to calculations by The Associated Press, the total value the company assigned to (CEO Steve) Newman’s compensation package was $5.8 million.
That figure includes an $850,000 base salary—a 34 percent increase from the prior year; perquisites of $622,057, which includes housing and vacation allowances, among other things; and the $374,062 bonus. Also included in the figure are stock options valued at $1.9 million and deferred shares valued at $2 million when those awards were granted in March 2010.
Transocean uses two safety criteria to calculate executive bonuses: the rate of incidents per 200,000 hours that employees work, and the potential severity of those incidents. In 2010, the rate of incidents dropped by 4% from 2009. A number that measures potential severity of those incidents fell nearly 15% from last year.
Eleven dead. The ecosystem of the Gulf of Mexico forever compromised.
If this was a ‘safe’ year for Transocean, I’d hate to work for them in other years.
- Transocean Execs Get Bonuses For ‘Best Year In Safety,’ Despite Gulf Disaster (huffingtonpost.com)
- Transocean Awards Big Bonuses, Citing “Safety Record”. WTF? (crooksandliars.com)
- Transocean executives get bonuses (bbc.co.uk)
- Transocean gives safety bonuses despite deaths (sfgate.com)
- Safety bonuses given despite Gulf spill deaths (msnbc.msn.com)
- Absurdly, Transocean Execs Received A Bonus For The “Best Year In Safety Performance” (RIG) (businessinsider.com)