Tranocean execs get big bonuses and raises

[Puppycow]

Despite Gulf oil spill, rig owner executives get big bonuses

Declaring 2010 "the best year in safety performance in our company's history," Transocean Ltd., owner of the Gulf of Mexico oil rig that exploded, killing 11 workers, has awarded its top executives hefty bonuses and raises, according to a recent filing with the U.S. Securities and Exchange Commission.

Boy, I'd hate to see their worst year in safety performance.

 

[Corsair 115]

Transocean Ltd... has awarded its top executives hefty bonuses and raises...

And whose decision was it to hand out those bonuses and raises? Might it be those very same top executives?

 

[Puppycow]

And whose decision was it to hand out those bonuses and raises? Might it be those very same top executives?

Generally it would be the Board of Directors who determines that.

Typical duties of boards of directors include:[2][3]

* governing the organization by establishing broad policies and objectives;
* selecting, appointing, supporting and reviewing the performance of the chief executive;
* ensuring the availability of adequate financial resources;
* approving annual budgets;
* accounting to the stakeholders for the organization's performance.
* setting their own salaries and compensation

It might be harder to justify their own compensation if the chief executive they select doesn't have a good performance. There's an incentive to "not rock the boat" when everyone in the room is making millions of dollars. Once you start questioning one person's exorbitant salary, somebody might point the finger back at you and you and question your exorbitant salary.