25 lines
2.1 KiB
Plaintext
25 lines
2.1 KiB
Plaintext
Message-ID: <19423957.1075861339337.JavaMail.evans@thyme>
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Date: Tue, 13 Nov 2001 16:15:18 -0800 (PST)
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From: chairman.ken@enron.com
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To: dl-ga-all_enron_worldwide1@enron.com
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Subject: Change of Control Provisions
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Mime-Version: 1.0
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Content-Type: text/plain; charset=us-ascii
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Content-Transfer-Encoding: 7bit
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X-From: Ken Lay - Office of the Chairman </O=ENRON/OU=NA/CN=RECIPIENTS/CN=MBX_KLAYOFFICECHAIR>
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X-To: DL-GA-all_enron_worldwide1 </O=ENRON/OU=NA/CN=RECIPIENTS/CN=DL-GA-all_enron_worldwide1>
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X-cc:
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X-bcc:
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X-Folder: \FERMIS (Non-Privileged)\Ermis, Frank\Inbox
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X-Origin: Ermis-F
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X-FileName: FERMIS (Non-Privileged).pst
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As many of you know, I have a provision in my employment contract which provides for a payment of $20 million per year for the remaining term of my contract in the event of a change of control of Enron. The merger with Dynegy, or a similar transaction with any other company, would trigger this provision on closing. Assuming the merger with Dynegy is closed within 6-9 months, as we expect, this provision would entitle me to total payments of slightly more than $60 million.
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Many CEOs have change of control provisions in their employment contracts and mine has been in place since 1989. But given the current circumstances facing the company and our employees, I have been giving a lot of thought these last few days to what to do about this payment. Initially, I thought I would use part of the funds for a foundation for our employees and take the remainder in stock and cash. However, after talking to a number of employees this afternoon, I have decided that the best course of action would be for me to waive my right to any of this payment. Therefore, at closing, I will receive no payments under this provision.
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I know this action does not remedy the uncertainty that you and your families face. But please know that I will continue to do everything in my power to serve the best interests of Enron's employees and shareholders. I am still very proud of what we have built at Enron, and I want to continue working with all of you to correct the problems and restore Enron to its rightful place in the energy industry.
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Thank you.
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