Friday, October 08, 2010

BP Pays Feinberg's Firm More than $2.5 million for 3 1/2 Months

Bloomberg interviewed Ken Feinberg, but he failed to disclose his pay for managing BP's $20 billion Oil Spew liability fund.  Instead, former Justice Department Chief Mike Mukasey released compensation paid to Feinberg's law firm.  

The compensation disclosure underscores that Feinberg is an employee of BP.

BP and President Obama approved Feinberg's role.  Mukasey blessed the pay as reasonable.  Bloomberg reported:

The $850,000 monthly payments to Feinberg’s firm will continue through year-end and then will be reviewed, a person familiar with the contract said today.

The money goes to seven professionals at Feinberg’s firm and is paid by BP separately from the fund to help victims, according to the person, who spoke on condition of anonymity about details not spelled out in today’s report. Among those being paid is Feinberg’s brother David, according to the report. David Feinberg is listed on the firm’s website as director of special projects. 

That's sweet pay for dealing with crude. It remains to be seen what Mr. Feinberg's personal take is from his BP employment.

Update 11-21-10:  Feinberg continues managing BP's risk via Oil Spew Fund

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