michael bromwich

Mon, 2011-04-04 13:09Emma Pullman
Emma Pullman's picture

Bonuses After Blowouts: Transocean Rewards Executives for Shoddy Safety

Nearly a year has passed since the Deepwater Horizon explosion killed eleven workers and caused the worst oil spill in U.S. history. A presidential commission blamed Transocean, the owner of the rig, and both BP and Halliburton for cost-cutting that caused the blowout. The BP blowout’s ravages continue, and it may be many years before we understand the full impacts of the oil disaster including the health implications of Corexit, the dispersant that was used to break apart the oil to minimize the (visible) damage. 

Transocean leased the Deepwater Horizon rig to BP, and 9 of the workers killed in the blowout were employees of the offshore drilling giant.  Given that, it seems curious that the company awarded its executives $400,000 in “safety” bonuses for 2010. According to the company, 2010 was “the best year in safety performance in our company’s history”. Yes, we’re talking about the same company that helped cause the industry’s highest-profile accident since the 1989 ExxonMobil Valdez spill in Alaska.

According to the company, executive bonuses are calcuated based on two satefy critera: the rate of incidents per 200,000 hours that employees work, and the potential severity of those incidents. By their estimations, in 2010, the rate of incidents dropped by 4% from 2009.

The company argued that they had an “exemplary safety record”. Perhaps they have a different understanding of “severity”, and of “safety” for that matter. 

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