$87 millionÂ Â is what BP may pay in fines for failing to clean up the egregious safety violations after 15 workers were killed in an explosion in Texas.
$3.14 billion was BP’s second-quarter earnings, considered “disappointing” since they were down 50% from the year-earlier level.
Is it any wonder so many corporations are chronic scofflaws, when the penalties even in extreme cases are barely material to their operating results? Â Since the explosion, four more workers have died at the same refinery.
It’s time to start computing corporate penalties as fractions of equity. Â Â A penalty of 1% of equity per quarter until the plant runs right would get BP management’s undivided attention.