BP PLC has set aside $2.13 billion to settle claims arising from the fatal Texas refinery accident in 2005. This is an increase from the previously disclosed $1.6 billion. The information was published last month in the United Kingdom oil giant’s annual report. In addition, BP said it was still in talks with the Chemical Safety Board on the final recommendations to be drawn from the accident, which killed 15 workers. BP also has settled U.S. derivative shareholders’ lawsuits against the company and its directors arising from incidents at its Texas refinery and at its Alaska Prudhoe Bay field.
Interestingly, BP’s new chief executive, Tony Hayward, has received a dramatic increase in his 2007 bonus, which was much higher than the award granted to his predecessor in 2006. The U.K. oil giant’s oil new CEO, who took over in May of 2007, was awarded a bonus of £1.26 million ($2.5 million) for 2007, according to BP’s annual report. The number compares with a £250,000 bonus for Mr. Hayward for 2006 and £900,000 the same year for his predecessor John Browne. In October, Mr. Hayward launched a wide-ranging restructuring at the company, following a difficult 2006, which included a well publicized, part-shut-down at a BP Alaska oil field. It’s pretty obvious that the bonuses for these corporate bosses weren’t awarded for “excellence” in safety!
Source: Wall Street Journal
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