Thursday, August 18, 2011

Co-Chair Reilly's Oil Spew Penalty

William Reilly suspended his membership on the ConocoPhillips board of directors while co-chairing Obama's BP Oil Spew Commission.  Reilly did not dispose of his $2.2 million in ConocoPhillips stock holdings, even though Conoco is a joint venture partner with BP in the Gulf of Mexico and an Alaska natural gas pipeline.

Reilly forfeited $50,000 in ConocoPhillips Board compensation relative to other directors.  Despite that Reilly received $180,355 for his half year board service.

Mr. Reilly elected to take a leave of absence from his position as a Director of ConocoPhillips while serving as co-chair of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling (the Commission). Following deliberations, the Commission issued its final report on January 11, 2011. On January 12, 2011, Mr. Reilly returned from his leave of absence and resumed active service as a Director of ConocoPhillips. As a consequence of his leave of absence, Mr. Reilly received no compensation during the period from July 2010 through December 2010. 
His return came just in time for the full 2011 stock award, which occurred on January 15. Three days after rejoining the board, Reilly received 2,526 restricted stock units which convert to ConocoPhillips stock on a one for one basis.  It was worth $170,000 at the time of the grant. 

Conoco drove margins up 82% after Reilly did his volunteer duty:

ConocoPhillips earned $17.09 per barrel of oil in the second quarter, up from $9.38 in the year-ago period. 
Reilly looked annoyed at Rachel Maddow for pushing his potential conflict of interest last June.  It cost him $50,000, a sum most private equity underwriters wouldn't leave on the table. 

Co-chair Reilly did control how BP and ConocoPhillip's Tiber Field in the Gulf of Mexico would be developed.  That's worth something to both companies.