$20 Billion Set To Be Doled Out By Compensation Czar On BP’S Behalf
August 23, 2010
U.S. (ChattahBox) – As pay czar Kenneth Feinberg prepares to open up BP’s $20 billion compensation fund, already complaints are coming in about the rules surrounding it.
Feinberg has handled several other payment decisions in the past, including the 9/11 fund, and the executive pay of those getting the bank bailouts. In both situations he has been praised for his handling of the funds. But he is getting less support for the BP fund than he did with the others.
Namely, it is the fact that after six month, those who are filing claims for compensation will not be able to file a civil lawsuit against the oil giant. This, Florida’s Attorney General Bill McCollum says, will weaken the power of the people, and instead shift it back to BP.
But Feinberg says this is not the case at all, and that he is responsible to neither BP nor the Administration, that he is an independent agent.
“The goal here is to try and explain to eligible claimants: ‘It is not in your interest to tie up yourself and the courts in years of uncertain protracted litigation when … there is a more efficient quick alternative,’” he told Reuters.
$20 billion is now scheduled to be given out, on top of the hundreds of millions already paid to those who suffered economic setbacks due to the April 11 explosion of a rig that led to the major environmental disaster.