Sens. Schumer, Wyden urge BP to suspend shareholder dividends in letter to CEO

Dear Mr. Hayward,

We write to you out of concern that you will be announcing a dividend to your shareholders prior to fully covering the cost of the cleanup for the oil spill in the Gulf of Mexico. Today, several media outlets are reporting that you are expected to hold a conference call this week pledging to maintain BP’s dividend.

We find it unfathomable that BP would pay out a dividend to shareholders before the total cost of BP’s oil spill clean-up is estimated. The total cost of the clean-up estimates could reach $37 billion if the well leaks until relief drilling is completed in August, according to Credit Suisse Group AG. While we understand the need to reassure shareholders that the disaster in the Gulf will not substantially impact BP’s long term financial health, we are concerned that such action to move money off of the company’s books and into investors pockets will make it much more difficult to repay the U.S. government and American communities that are working around the clock to stem the damage caused by this devastating oil spill.

We urge you to reconsider your dividend pledge until accurate costs of clean-up and liability claims can be estimated. We are certainly not opposed to BP paying dividends after the well is capped, clean-up has been completed, and the victims have been justly compensated. But the families of those who have perished in this disaster, the industries that have been devastated from the ecological damage along the coasts, and the individuals who are sacrificing their health and safety to stem the damage deserve to know that BP will fulfill its obligations to them before its shareholders.

Sincerely,

U.S. Senator Charles E. Schumer
U.S. Senator Ron Wyden