AP NEWS
Related topics

Enron Chiefs Reaped $744M in 2001

June 18, 2002

%mlink(STRY:; PHOTO:; AUDIO:%)

NEW YORK (AP) _ Top Enron Corp. workers reaped $744 million of payments and stock in the year leading up to its bankruptcy filing, the company disclosed late Monday.

Representatives of former workers and shareholders responded angrily to the bankruptcy court filing, accusing the 144 senior managers of essentially raiding Enron’s coffers while leaving their clients with relatively little or nothing at all.

Enron disclosed in a 1,436-page filing with the federal bankruptcy court in New York that the executives received $309.5 million in salary, bonuses, long-term incentives, loan advances and other payments. The executives also exercised stock options and received stock valued at $434.5 million, according to the filing.

Among the executives who shared in the pay and awards were: former chairman Kenneth Lay, former chief executive Jeffrey Skilling, former chief financial officer Andrew Fastow. Army Secretary Thomas White, who ran Enron’s retail energy services unit, was also listed.

Eli Gottesdiener, a Washington attorney representing 24,000 participants in Enron retirement plans who lost as much as $1 billion on the collapse of Enron’s stock, said: ``It’s outrageous. My clients find it outrageous and it’s just more evidence that people at the top knew that they better get, while the getting was good.

``And they did, and my clients are left holding the bag. They drained the company of hundreds of millions of dollars,″ Gottesdiener said.

Besides the executives pay and awards, Enron funded a retention bonus plan in the fall of 2001 with $50 million to keep 76 employees ``deemed critical″ to the energy company’s wholesale trading operations. Shortly thereafter, the company’s proposed merger with crosstown rival Dynegy Inc. failed.

Enron filed for bankruptcy Dec. 2.

___

On the Net:

http://www.enron.com

AP RADIO
Update hourly