Transocean’s senior managers will donate bonuses they received for the company’s 2010 safety performance to a memorial fund set up for families of the 11 men who died in the April 20, 2011 Deepwater Horizon rig accident.
The company said in filings last week that 2010 was its “best year for safety performance” ever according to the way it gathered safety statistics. That meant its executive team was eligible for 115 percent of its safety-related bonus goals, although those bonuses were reduced to 67 percent of the target because of the 11 deaths last year.
Regulators and members of the public expressed outrage at the bonuses. The company apologized and on Tuesday said the funds would be donated to the Deepwater Horizon Memorial Fund Transocean set up last year.
“The executive team made this decision because we believe it is the right thing to do,” said Chief Executive Officer Steven Newman in a statement. ”Nothing is more important to Transocean than our people, and it was never our intent to diminish the effect the Macondo tragedy has had on those who lost loved ones. We offer our most sincere apologies and we regret the impact this matter has had on the entire Transocean family.”
Executives who will donate their safety bonuses, in addition to Newman, include CFO Ricardo H. Rosa, Executive Vice President of Asset and Performance Arnaud A.Y. Bobillier, Executive Vice President of Legal and Administration Eric Brown, and Executive Vice President of Global Business Ihab M. Toma.
The Deepwater Horizon Memorial Fund is not an official charity, so the donations are not tax deductible.
Transocean set up the fund shortly after the accident to assist the families of the 11 men who died in the rig explosion. The sum being donated by the senior executives will exceed $250,000. More than $1.6 million has been distributed by the Memorial Fund to date. All funds are distributed equally among the families.
Transocean started reaching settlements with families of the deceased late last year. According to the Wall Street Journal the settlements are starting at around $8 million per family, a figure that is much higher than prior death settlements because of the company’s desire to avoid further litigation.
They wouldn’t have do so without the media exposing them. Good Job Press!!!
Darn those evil rich people!!!
Who made them donate that money!!!
I guess SarahATP missed this part.
Transocean set up the fund shortly after the accident to assist the families of the 11 men who died in the rig explosion. The sum being donated by the senior executives will exceed $250,000. More than $1.6 million has been distributed by the Memorial Fund to date. All funds are distributed equally among the families.
As long as the fund gets distributed to the families and not decimated by administrative costs that is a touching gift.
Now, if only a certain column writer who penned a book about the disaster would step up to the plate and donate his profits.
chronicritic2 :
You are correct, the fund was setup shortly after the accident. Sarahs point is that they wouldnt have donated their monies to the fund had it not been for the press.
“Regulators and members of the public expressed outrage at the bonuses. The company apologized and on Tuesday said the funds would be donated to the Deepwater Horizon Memorial Fund Transocean set up last year.”
-=-
You miss that part Chronicritic2??????
I don’t care what motivated them.
Good move.
No, I don’t think SarahATP missed that part. I think she’s spot on. These bonuses have absolutely NOTHING to do with the fund previously set up by Transocean.
Regulators and members of the public expressed outrage at the bonuses. The company apologized and on Tuesday said the funds would be donated to the Deepwater Horizon Memorial Fund Transocean set up last year.
See that…public outrage, company apology, funds (bonuses)to become donations to fund. Good try, cc2.
“Transocean’s senior managers will donate bonuses they received for the company’s 2010 safety performance..”
What safety performance! 11 workers died. Safety is the last thing oilfield execs and managers care about. It’s all about the cost of oil. Personnel are expendable in their eyes.
SarahATP has it right. Would not have happened without the public outrage. Just the thought of giving any “safety bonus” in this kind of year brings into question the safety values of the executives.
Smooth move…lessens the criticism, but if they really wanted to make a grand gesture they could have donated all of their bonuses ($1,004,439), instead of 25% of them (the “safety” component). But maybe the poor guys and gals can’t get by on their salaries…or maybe not. From their SEC Filing:
S. Newman, President/CEO : 2010 Salary $850,000 Total Compensation $6,307,355
R. Rosa, Sr VP/CFO : 2010 Salary $517,344 Total Compensation $3,611,845
A. Bobillier, Exec VP : 2010 Salary $450,357 Total Compensation $3,138,326
I. Toma, Exec VP : 2010 Salary $427,937 Total Compensation $2,625,352
Just to be clear, it appears they aren’t donating their entire bonuses, but only about 25%. Apparently the company feels about 25% of the bonuses were calculated on safety performance. So they will still receive 75% of the bonuses that were publicized
Steve Newman, president and CEO: $374,062
Ricardo Rosa, chief financial officer: $150,528
Eric Brown, president, legal and administration: $113,612
Arnaud A.Y. Bobillier, executive vice president, asset and performance: $131,040
Ihab M. Toma, executive vice president, global business, $109,040
Robert L. Long, former CEO: $86,912
Cheryl D. Richard, former senior vice president of human resources, technology: $39,245
If you add all of those up, it totals $ 1,004,439.00. So what is being “donated” to the fund is $ 878,282.00.
It’s funny how Robert Long and Cheryl Richard kept the money and ran…
But then again, nothing surprises me about Transocean anymore.