297 lines
12 KiB
Plaintext
297 lines
12 KiB
Plaintext
Message-ID: <4249222.1075855479693.JavaMail.evans@thyme>
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Date: Wed, 8 Nov 2000 08:59:00 -0800 (PST)
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From: enron.announcements@enron.com
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To: all.worldwide@enron.com
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Subject: Organizational Changes
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Mime-Version: 1.0
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Content-Type: text/plain; charset=ANSI_X3.4-1968
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Content-Transfer-Encoding: quoted-printable
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X-From: Enron Announcements
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X-To: All Enron Worldwide
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X-cc:
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X-bcc:
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X-Folder: \Frank_Ermis_Dec2000\Notes Folders\Discussion threads
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X-Origin: Ermis-F
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X-FileName: fermis.nsf
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We are making a number of significant organizational changes. These change=
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s=20
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are intended to accomplish four key objectives:
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First, we need to realign all our wholesale businesses around the successfu=
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l=20
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business model developed over the last decade in North America and Europe. =
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=20
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This model relies on extensive physical and transactional networks built=20
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around a relatively small strategic asset position.
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Second, we need to significantly streamline corporate reporting=20
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relationships. Particularly with Joe Sutton=01,s departure, the ability to=
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=20
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directly manage the day-to-day activities of 15 independent business units=
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has become increasingly difficult.
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Third, we need to accomplish these changes without, in any way, compromisin=
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g=20
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the ongoing profitability of all our businesses and without delaying or=20
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hindering our effort to monetize a significant portion of our lower-yieldin=
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g=20
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asset positions.
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And fourth, as always, we need to take advantage of the reorganization to=
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redeploy our talent into our highest value opportunities.
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ENRON WHOLESALE SERVICES
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Today, we are forming Enron Wholesale Services (EWS) which will consolidate=
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=20
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our global wholesale businesses. The closer alignment of our wholesale=20
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businesses will accomplish the following: (1) enhanced communication and=20
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coordination across business units, (2) more rapid deployment of people to=
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=20
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higher valued opportunities, (3) more effective prioritization of=20
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opportunities across the wholesale business, and (4) more rapid extension o=
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f=20
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Enron=01,s wholesale business model and capabilities into new industries an=
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d=20
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markets.
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Enron Wholesale Services will include our current North American, European=
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=20
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(including Japan and Australia), Global Markets, and Industrial Markets=20
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operations, and will be expanded to include Enron=01,s Net Works business u=
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nit=20
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as well as a new unit =01) Enron Global Assets. In addition, Enron=01,s me=
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rchant=20
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businesses outside of North America and Europe will be integrated into this=
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=20
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new structure as described below.
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Mark Frevert, currently Chairman of each of our wholesale units, will assum=
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e=20
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the role of Chairman and CEO of Enron Wholesale Services. Greg Whalley,=20
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currently Chairman and CEO of Enron Net Works, will join Mark in the Office=
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=20
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of the Chairman as President and Chief Operating Officer.
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Providing further impetus for these organizational changes, several of our=
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international business unit leaders have elected to move into new leadershi=
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p=20
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positions:
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Rebecca McDonald, currently CEO of Enron APACHI, will join EWS as President=
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=20
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and CEO of Enron Global Assets. Enron Global Assets will have responsibilit=
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y=20
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for managing all of Enron=01,s existing energy asset portfolio outside of N=
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orth=20
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America and Europe. Joining Rebecca in the Office of the Chairman as COO=
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=20
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will be Jim Hughes, currently COO of Enron APACHI. Rebecca and Jim will=20
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report to the EWS Office of the Chairman.
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Sanjay Bhatnagar, currently CEO of Enron India, has joined EBS as CEO for t=
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he=20
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Middle East and Asia region. Sanjay will be responsible for building our=
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=20
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broadband business in this region and the current EBS team in this region=
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will report to Sanjay. In this role, Sanjay will report to the EBS office =
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of=20
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the Chairman. In addition, Sanjay will continue to remain responsible for=
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Enron=01,s wholesale energy business in India and will transition this busi=
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ness=20
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into Enron Global Assets in the near future.
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Diomedes Christodoulou, currently Co-CEO of Enron South America, has joined=
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EBS as Chief Commercial Officer. Diomedes will be located in London and wi=
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ll=20
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focus his origination activities on global opportunities, with near term=20
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attention to the wholesale and enterprise sectors. Diomedes will report to=
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the EBS Office of the Chairman.
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Jim Bannantine, currently Co-CEO of Enron South America, will be joining EE=
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S=20
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to lead EES=01, commercial efforts outside North America and Europe. In or=
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der=20
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to ensure a smooth transition for our South American businesses and to=20
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facilitate our asset sales activities, Jim will remain in South America for=
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at least the next several months and continue to serve as CEO of Enron Sout=
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h=20
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America. Throughout the transition, Jim will report to Cliff Baxter and to=
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the Office of the Chairman of Enron Wholesale Services. Following the=20
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transition, Jim will join EES.
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In addition to these changes in our international asset operations=20
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activities, we are making the following changes in our merchant wholesale=
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=20
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businesses and the commercial support functions:
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Enron Net Works
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Louise Kitchen will assume Greg=01,s previous responsibilities as President=
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and=20
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CEO of Enron Net Works, reporting into Mark and Greg. =20
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Enron Americas
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Concurrent with the transfer to Enron Global Assets of responsibility for=
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operating Enron=01,s South and Central America asset base, all trading,=20
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marketing, and new asset development activities in these regions will repor=
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t=20
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into a new entity, Enron Americas. Enron Americas will have responsibility=
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for all wholesale merchant businesses across North, Central and South=20
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America. Dave Delainey, President and CEO, and John Lavorato, Chief=20
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Operating Officer will comprise the Office of the Chairman for Enron=20
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Americas.
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Enron Europe
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The Enron Europe organization, which includes Enron=01,s businesses in Aust=
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ralia=20
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and Japan, and Enron Metals, remains unchanged under the leadership of John=
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=20
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Sherriff, President and CEO, and Michael Brown, Chief Operating Officer.
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Enron Global Markets
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Enron Global Markets, under the leadership of Mike McConnell, President and=
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=20
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CEO, and Jeff Shankman, Chief Operating Officer, will continue to have=20
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responsibility for Enron=01,s Middle East and LNG operations. With the=20
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exception of Ecoelectrica in Puerto Rico, all operating power plants and=20
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associated personnel in the Caribbean and Central America will transfer to=
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Enron Global Assets. Enron Global Markets will also continue to manage the=
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commodity businesses in crude and products, coal, weather, insurance,=20
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equities, interest rates, foreign exchange, and agricultural products.
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Enron Industrial Markets
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Enron Industrial Markets=01, organization, under the leadership of Jeff McM=
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ahon,=20
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President & CEO, and Ray Bowen, Chief Operating Officer, remains unchanged.
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Commercial Support for EWS
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The commercial support functions for EWS will remain with, and be managed b=
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y,=20
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the individual business units. We are creating no incremental overhead in=
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the creation of EWS, and in fact hope to reduce our operating costs by more=
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efficient utilization and sharing of resources across EWS.
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To this end we have asked several people to take on an expanded role across=
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EWS in addition to their ongoing roles within their business units. These=
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newly defined roles are as follows:
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Mid and Back Office Operations =01) Sally Beck will lead Mid and Back Offic=
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e=20
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Operations across EWS. These services will become part of Enron Net Works,=
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with Sally reporting to Louise Kitchen and Rick Causey, Executive Vice=20
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President and Chief Accounting Officer. This alignment creates a coordinat=
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ed=20
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services organization with IT and e-commerce platforms to support the=20
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wholesale businesses and to maximize opportunities to commercialize these=
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services. Mid and Back Office services for all commercial activities will=
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continue to be organized with dedicated operations controllers responsible=
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for specific commodities and/or geographic locations.
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Legal =01) Mark Haedicke will serve in the role of General Counsel for EWS.
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Regulatory and Government Affairs =01) This function will remain organized =
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on a=20
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regional basis. Rick Shapiro will support all EWS businesses operating in=
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the Americas, and Mark Schroeder, who is based in London, will support all=
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European and Eastern Hemisphere operations. Rick and Mark will also contin=
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ue=20
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to support all other Enron businesses operating in their respective regions=
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and will continue to report to Steve Kean, Executive Vice President and Chi=
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ef=20
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of Staff.
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Public Relations =01) This function is also organized primarily on a region=
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al=20
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basis. Eric Thode will have responsibility for North American activity,=20
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Enron Net Works, and Enron Industrial Markets. Jackie Gentle will continue=
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in her role for Enron Europe (including Japan and Australia) and John Amble=
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r=20
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will have responsibility for activity outside North America and Europe as=
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well as providing support for Enron Global Markets and Enron Global Assets.=
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These individuals will also continue to have a split reporting relationship=
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to Mark Palmer, Vice President of Communications.
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Business Analysis and Reporting =01) Wes Colwell will expand his role to co=
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ver=20
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EWS reporting in addition to his current role in North America.
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Attached for your review is an organization chart for Enron Wholesale=20
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Services which summarizes the changes described here. As this organization=
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continues to evolve we will keep you informed of any additional changes.
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ENRON GLOBAL EXPLORATION AND PRODUCTION
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AND ENRON WIND
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As part of our company-wide initiative to examine our assets and investmen=
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ts=20
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around the world, we are considering a variety of options with respect to=
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EGEP and EWC. As a consequence, we are putting these businesses under Clif=
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f=20
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Baxter=01,s direction. Jeff Sherrick, CEO of EGEP, and Jim Noles, CEO of E=
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nron=20
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Wind, will report to Cliff.
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CORPORATE STAFF
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We are consolidating the corporate staff functions: Human Resources,=20
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Government Affairs, Public Relations/Communications and Administration. In=
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that regard, Cindy Olson, Executive Vice President of Human Resources and=
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Community Relations, will report to Steve Kean, Executive Vice President an=
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d=20
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Chief of Staff.
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COMMITTEE STRUCTURE
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In light of the increased leadership opportunities created by Enron=01,s=
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growth, the Executive Committee will be expanded to include more of our=20
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business unit leaders. The primary role of this committee will continue to=
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be the communication of relevant information across Enron=01,s businesses a=
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nd=20
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the coordination of activities across those businesses. We will also be=20
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drawing on this group to lead company-wide initiatives such as the=20
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performance review process and evaluation and creation of new businesses. =
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The Executive Committee membership is shown on the attached list.
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We are also forming a new committee =01) the Enron Corporate Policy Commit=
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tee. =20
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This group will be responsible for overall corporate policy, personnel=20
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management policy and corporate strategy. The Enron Corporate Policy=20
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Committee membership is also shown on the attached list.
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We are confident that these changes will align our talent and our capital =
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to=20
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our highest return opportunities. Please join us in congratulating and=20
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supporting all of these individuals in their new roles.
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