Senators urge Transocean exec to suspend dividend

Sen. Ron Wyden (D-Ore.) led fellow Democrats in sending a letter to Transocean CEO Steven Newman urging him to delay paying a $1 billion dividend to investors until it finalizes its obligation for the oil spill in the Gulf of Mexico. The company owns and operates the Deepwater Horizon rig leased by BP that exploded in April, killing 11 workers and spilling historic amounts of oil into the water. 

"It seems inexplicable to us that, while a full accounting of your company's financial responsibilities is not yet clear, you are still planning to issue $1 billion in dividends as if no accident had occurred," the senators wrote, adding, "While we understand your need to reassure shareholders during these difficult times for your company, we do not believe that such reassurances should come at the expense of meeting your responsibilities to the communities of the Gulf Coast." 

Senators also urged BP to suspend its dividend payment to shareholders until Gulf residents were compensated for the spill. They were successful in stopping the company from issuing those checks after BP executives met with President Barack Obama about the matter.

The senators used their letter to Newman to encourage him to follow BP's lead. 

"Many things remain unclear about what happened on the Deepwater Horizon," they wrote. "Before your company begins to reward its shareholders, we urge you to follow BP's example by withholding further shareholder rewards until investigations of this matter are complete."