ENRON'S Jeffery K. Skilling
Jeffrey K. Skilling
FIRSTROW, FROM LEFT, Ken L. Harrison, John A. Urquhart, Robert A. Belfer, Norman P. Blake, Jr., Robert K. Jaedicke, Ronnie C. Chan, Jeffrey K. Skilling, Kenneth L. Lay and Wendy L. Gramm. Second Row, from left, Bruce G. Willison, John H. Duncan, Joe H. Foy, Charls E. Walker, John Wakeham, Jerome J. Meyer, Herbert S. Winokur, Jr. and Charles A LeMaistre.
Jeffrey Skilling, former chief executive: Sold 1.1 million shares for $66.9 million
Blind Faith: How Deregulation and Enron's Influence Over
Government Looted Billions from Americans
Nov. 25, 1953, Pittsburgh
B.S., applied science, Southern Methodist Univ., 1973; Harvard MBA, 1979
President and COO, Enron Corp.; becomes CEO on Feb. 12
At 13, was chief production director for an Aurora (Ill.) TV station
INTRODUCTION TO ENRON
Joined McKinsey & Co. after Harvard and worked with Enron in '87 to create the first forward market for natural gas
HOW HE'LL CHANGE AS CEO
"I'll probably have to be a little less blunt"
Eight, including at least one from rock climbing. Broke his back while working one summer on an Illinois highway, which helped him avoid the Vietnam draft
''I've never not been successful in business or work, ever''
Divorced; one daughter, 16, and two sons, 15 and 10
|President, Director, Chief Executive Officer, Chief Operating Officer
(historical quotes, profile, other insiders)
|Transactions Reported Over the Last Year|
|13-Jun-01||10,000||ENE||Sold at $50.68/Share.
Proceeds of $506,800.
|6-Jun-01||10,000||ENE||Sold at $52.74/Share.
Proceeds of $527,400.
|30-May-01||10,000||ENE||Sold at $52.95/Share.
Proceeds of $529,500.
|23-May-01||10,000||ENE||Sold at $55.52/Share.
Proceeds of $555,200.
|16-May-01||10,000||ENE||Sold at $57.30/Share.
Proceeds of $573,000.
|16-May-01||140,000||ENE||Proposed Sale (Form 144) of Restricted Shares.
Estimated proceeds of $7,978,600.
|9-May-01||10,000||ENE||Sold at $57.14/Share.
Proceeds of $571,400.
|2-May-01||10,000||ENE||Sold at $61.78/Share.
Proceeds of $617,800.
|25-Apr-01||10,000||ENE||Sold at $62.05/Share.
Proceeds of $620,500.
|18-Apr-01||10,000||ENE||Sold at $61.30/Share.
Proceeds of $613,000.
|11-Apr-01||10,000||ENE||Sold at $59.50/Share.
Proceeds of $595,000.
|4-Apr-01||10,000||ENE||Sold at $54.10/Share.
Proceeds of $541,000.
|28-Mar-01||10,000||ENE||Sold at $58.66/Share.
Proceeds of $586,600.
|21-Mar-01||10,000||ENE||Sold at $59.24/Share.
Proceeds of $592,400.
|14-Mar-01||10,000||ENE||Sold at $61.41/Share.
Proceeds of $614,100.
|7-Mar-01||10,000||ENE||Sold at $69.52/Share.
Proceeds of $695,200.
|28-Feb-01||10,000||ENE||Sold at $69.54/Share.
Proceeds of $695,400.
|21-Feb-01||10,000||ENE||Sold at $74.78/Share.
Proceeds of $747,800.
|14-Feb-01||10,000||ENE||Sold at $80.42/Share.
Proceeds of $804,200.
|14-Feb-01||130,000||ENE||Proposed Sale (Form 144) of Restricted Shares.
Estimated proceeds of $10,549,500.
|7-Feb-01||10,000||ENE||Sold at $80.57/Share.
Proceeds of $805,700.
|31-Jan-01||10,000||ENE||Sold at $79.69/Share.
Proceeds of $796,900.
|31-Jan-01||5,889||ENE||Disposed by Private Transaction at $80.00/Share.
Surrendered Value of $471,120.
|24-Jan-01||10,000||ENE||Sold at $80.28/Share.
Proceeds of $802,800.
|17-Jan-01||10,000||ENE||Sold at $68.94/Share.
Proceeds of $689,400.
|11-Jan-01||21,410||ENE||Disposed by Private Transaction at $69.44/Share.
Surrendered Value of $1,486,710.
|10-Jan-01||10,000||ENE||Sold at $69.20/Share.
Proceeds of $692,000.
|3-Jan-01||10,000||ENE||Sold at $78.16/Share.
Proceeds of $781,600.
|27-Dec-00||10,000||ENE||Sold at $83.00/Share.
Proceeds of $830,000.
|20-Dec-00||10,000||ENE||Sold at $79.03/Share.
Proceeds of $790,300.
|18-Dec-00||357,369||ENE||Surrendered Exercised Shares.
Surrendered Value of $28,432,278.
|18-Dec-00||500,000||ENE||Acquired Shares via Exercise of Options at $41.06/Share.
Cost of $20,530,000.
Enron's Power Crisis
By Bethany Mclean, September 2001 Issue
"Bizarre" is how everyone describes it. On Aug. 14, Enron CEO Jeff Skilling--a self-described "brilliant" 47-year-old who says he's never suffered any kind of failure--announced he was relinquishing his title and leaving the company after a mere six months in the top job. Skilling insisted that the parting was voluntary, laying the blame on unspecified personal, non-health-related reasons. But by leaving when and how he did, Skilling forfeited a roughly $20 million severance package and gained the responsibility of repaying a $2 million loan that Enron would have forgiven had he stuck around until the end of the year.
More bizarre than his timing is how quickly Enron's once tight relationship with Wall Street deteriorated during Skilling's reign. The ex-CEO was famously boastful--insisting that Enron's nascent broadband trading business was worth $35 billion--and thin-skinned, declaring on a conference call that a money manager who dared ask for a balance sheet was an "asshole."
Former Enron chief clashes with his accuser
By Rupert Cornwell in Washington
27 February 2002
In a dramatic personal con-frontation on Capitol Hill yesterday, Enron's former chief executive, Jeffrey Skilling, flatly rejected assertions that he must have known of the problems that sent the company into bankruptcy.
With Sherron Watkins, the Enron vice-president and celebrated whistleblower sitting just two places away from him, Mr Skilling tried to convince sceptical members of the Senate commerce committee that he simply did not understand the complexities of secret partnerships whose debts brought the biggest corporate collapse in US history in December.
The clash came as the Justice Department made a possiblebreakthrough in its criminal investigation of the affair, with the report that a key former executive was co-operating with prosecutors.
Until he was sacked last November, Ben Glisan was Enron's treasurer, as well as a participant and financial beneficiary of the partnerships. If Mr Glisan strikes a deal with prosecutors, his evidence could hasten the indictment of senior executives, including Andrew Fastow, Enron's former chief financial officer who made at least $30m (£21m) from the partnerships, and perhaps Mr Skilling.
"I am not an accountant," the icily composed Mr Skilling told one senator after another. "I relied on our accountants. Andersen had taken a hard look at this structure. They believed it was appropriate. The board approved it after accountants signed off on it."
But his professions of ignorance were flatly contradicted by Ms Watkins. Last August she warned Kenneth Lay, Enron's former chairman, that the company risked being consumed by a gigantic accounting scandal. Without making eye contact with Mr Skilling, she in effect accused him of lying. "Mr Skilling was aware of the problem," she said.
Asked later why she didn't go to Mr Skilling with her doubts, she replied: "I thought it would be a job-terminating move. Mr Fastow would not have put his hand in the Enron candy jar without explicit approval from Mr Skilling."
Ms Watkins described the appointment of Mr Glisan as Enron's treasurer as akin to "letting the fox into the chicken coop".
Several senators criticised Enron's practice of using its own stock to back transactions by several of the partnerships, and thus to conceal debt. The dealings enabled Enron to artificially inflate its earnings, until the whole scheme unravelled last year.
Ms Watkins had declared repeatedly that the practice was illegal quite apart from the conflicts of interest involved when the same people represented both Enron and the partnerships that were supposedly independent of it.
One group of partnerships, called Raptors, "owed us $700m and was going to pay us back by using our own stock", she said, noting for good measure that the value of that stock was plunging, making it increasingly difficult for the debt ever to be repaid.
Mr Skilling was forced to admit that, despite having a business masters degree from Harvard, he was unaware that a company's equity should not be used to manipulate its earnings. The Raptors, Mr Skilling maintained, were there to hedge Enron against volatile high-technology investments. He was "absolutely concerned" about protecting the company from risk. "I did not dupe Ken Lay, I have not lied to Congress, and my testimony has not been contradictory," he claimed, before launching into a diatribe against his inquisitors.
He said "common sense and common decency" had been thrown out of the window in the congressional hearings, where several Enron executives, including Mr Fastow and Mr Lay, have already invoked their constitutional rights to avoid self incrimination. "We are labelled hucksters and criminals with complete disregard for the facts," Mr Skilling declared.
Senator Says Enron Not Cooperating
Friday, Feb. 1, 2002
WASHINGTON -- Enron Corp. has failed to provide a Senate committee with information on a number of outside partnerships used to conceal massive debts, a senator leading an investigation said Thursday.
Sen. Byron Dorgan, D-N.D., said the documents include a list of the 3000 partnerships, who held a stake in them, how much they were paid and what Enron's board of directors may have known about them.
"It's very important for Congress to be able to do its work, to fully investigate what has happened here, for us to have information about all of these partnerships," he said. "To date, the corporation has provided no information to the committee about these partnerships."
Dorgan said the committee didn't immediately plan to issue a subpoena to the company.
There are nine-Enron-related hearings scheduled on Capitol Hill next week. Dorgan, chairman of a Senate Commerce subcommittee, will have the first chance to question former Enron Chairman and Chief Executive Officer Kenneth Lay, who is scheduled to appear before the panel at 9:30 a.m. Monday.
Robert Bennett, a Washington attorney representing Enron, was unavailable for comment late Thursday.
Dorgan said Jeffrey Skilling, the former chief executive officer, and Andrew Fastow, Enron's former chief financial officer, had been requested to appear at Monday's hearing.
Attorneys for Skilling told the committee he was unable to appear. Therefore, the senator said he intends to schedule another hearing so that the committee will be able to take testimony from the former chief executive.
Fastow, who was compensated an estimated $30 million for his role in the company, has not responded to the committee's request.
On Dec. 2, Houston-based Enron filed the largest bankruptcy in U.S. history. In October, the company was forced to disclose it had concealed more than $500 million in debt from related partnerships led by company executives.
The disclosure sent the company's stock, which had once traded at around $90 a share, to less than $1 a share.
Sat Mar 2 17:07:50 2002
CLICK FOR FULL STORY:
Recent coverage of investigations surrounding Enron and its
Chicago-based auditor Andersen.
Skilling: Lawmakers acting as judge, jury
March 2, 2002. Former Enron chief executive Jeffrey Skilling
said he couldn't have overseen everything at the company and
accused lawmakers who have challenged his testimony of
"acting as judge and jury" in an election year.
Andersen loses another major client
March 2, 2002. Andersen lost pharmaceuticals giant Merck &
Co. as a client Friday, as the accounting firm agreed to pay
$217 million to settle a malpractice lawsuit in Arizona.
Law firm may face hurdle in Andersen suit
March 2, 2002. The law firm suing Andersen for its botched
audit of Enron Corp. may have a conflict of interest because it is
also involved in four other suits in which Andersen is a named
or likely defendant, legal experts say.
House panel's Enron documents rebut Skilling's claim
March 1, 2002. A House committee released documents
Thursday suggesting former Enron Chief Executive Officer
Jeffrey Skilling appeared to have knowledge of the company's
perilous financial condition before he resigned.
Amount to settle draws interest
March 1, 2002. Attorneys for Enron Corp. stakeholders, while
still insisting publicly that it's too soon to talk about settlement of
their legal claims, said privately Thursday they are seriously
considering a $750 million offer from the bankrupt energy
trader's auditor, Chicago-based Andersen.
Enron execs got bonuses linked to stock prices
March 1, 2002. Enron Corp. paid its executives huge one-time
bonuses last year as a reward for hitting stock-price targets in
2000--the very time, investigators say, when those executives
were improperly inflating the company's profits by up to $1
Enron director to yield Motorola seat
March 1, 2002. A movement to kick Enron Corp. directors off
other corporate boards received a boost Thursday when
Motorola Inc. announced that Enron director Ronnie Chan will
not seek re-election to the Schaumburg company's board.
GAO likely to keep pressure on Cheney
March 1, 2002. Despite a judge's order that the Energy
Department must release 7,500 pages of documents on Vice
President Dick Cheney's energy task force, the General
Accounting Office is likely to press ahead with its separate
case against Cheney's office.
Stock experts explain touting of Enron
February 28, 2002. Wall Street analysts who recommended
Enron stock as the company slid toward bankruptcy testified
Wednesday that they were not influenced by their own firms'
investments and were misled by Enron into believing there were
Judge tells Energy to yield papers
February 28, 2002. A federal judge has ordered the Energy
Department to disclose thousands of pages of documents from
Vice President Dick Cheney's energy task force, a decision that
forces the Bush administration to make public detailed
information it has fought hard to protect.
Fed boss decries exec stock options
February 28, 2002. Critics of executive stock options have a
Astros drop Enron name
February 28, 2002. The Houston Astros are dropping the name
"Enron Field" from their ballpark, severing the embarrassing
connection to the bankrupt energy giant.
Volcker names key advisers to Andersen panel
February 27, 2002. Former Federal Reserve Chairman Paul Volcker named two other members to
an oversight board charged with overhauling the business practices at Arthur Andersen LLP, the
accounting firm tainted by its role in the Enron Corp. scandal.
Senators, whistle-blower rain disbelief on Skilling
February 27, 2002. A combative Jeffrey Skilling, Enron Corp.'s former chief executive, tangled
with lawmakers Tuesday, denying he had lied to Congress and saying he was not the
"perpetrator" of the problems that led the company to seek bankruptcy protection.
Enron insider eyes break, sources say
February 27, 2002. Ben Glisan, a former treasurer with Enron Corp., is moving toward
cooperating with federal investigators probing the company's collapse in exchange for immunity
or a plea deal, sources said Tuesday.
Insurers fight to avoid payouts on Enron
February 27, 2002. Large insurance companies are fighting to extricate themselves from
potentially enormous payouts related to Enron Corp.'s collapse.
Andersen revamp seen under Volcker
February 26, 2002. Andersen, the embattled Chicago-based accounting firm, is likely to undergo
a profound overhaul at the hands of Paul Volcker, the former Federal Reserve chairman named
recently to head a special oversight board at the firm.
Enron showdown looms
February 26, 2002. The woman who claimed to know too much and the man who claimed to
know too little about Enron Corp.'s collapse are scheduled to testify Tuesday before a Senate
committee trying to find out which one to believe.
Enron plot takes twist
February 26, 2002. The spectacular collapse of Enron Corp. has raised fresh questions about
every fiber in the safety net woven over the years to protect investors from major losses.
U.S. mulls system to punish executives
February 26, 2002. In the wake of the Enron scandal, the Bush administration is studying ways
to punish corporate executives whose actions may be technically legal but who hurt
shareholders or employees through negligence, Treasury Secretary Paul O'Neill said Monday.
Government-backed loans powered Enron
February 25, 2002. Enron Corp. has asked a federal agency to pay a huge insurance claim on an
idled power plant in India, a project financed in part by a still-outstanding government-backed
Ex-Enron exec walking wire
February 25, 2002. When the time came earlier this month for executives from Enron Corp. to
explain their roles to Congress in the events that led to the company's collapse, all the top
officials whose actions are now being examined by federal prosecutors chose to invoke their 5th
Amendment right against self-incrimination.
Enron scandal's crucial recruit
February 24, 2002. When Andrew Fastow set out to burnish Enron Corp.'s financial results
while hiding its liabilities, he didn't do it alone.
No assurance of Enron insurance payouts
February 24, 2002. As attorneys scour the bankrupt Enron Corp. for money, some are locking
onto $435 million of insurance meant to protect the company and top officials during lawsuits.
Battered Enron relies on pipelines, plants
February 24, 2002. Enron Corp.'s pipelines and power plants may not be as lively as its
commodity-trading operations once were, but they are the bankrupt company's main source of
steady income these days.
Shady practices at Enron date to 1987, magazine says
February 24, 2002. Hiding losses and camouflaging wrongdoing was an established pattern at
disgraced energy trader Enron Corp. as far back as 1987, according to a Vanity Fair magazine
report published Thursday quoting former company auditors and insiders.
Keener focus on Enron deals
February 20, 2002. Former Enron Corp. executive Andrew Fastow, in remarks last August to a
law firm reviewing the company's accounting practices, declared that complaints about the
methods he was using to beef up Enron's profits were merely the "second-guessing" of
something that was great for Enron.
Andersen is the WD-40 for that 1040 form
February 20, 2002. The income tax financial forms have been arriving in the mail, prompting the
usual angst and well-intentioned vows that I will attend to them early.
Enron disaster a lucky break for TV business journalists
February 20, 2002. The collapse of the energy-trading giant Enron may have ruined millions of
stockholders, employees and creditors, but it was a piece of good luck for at least one group:
television business journalists.
Questions linger on Andersen
February 19, 2002. It didn't carry a computer virus that wiped out every Enron file, but an
extraordinary e-mail from Chicago to Houston may have produced similar results.
The neighborhood accountant
February 19, 2002. For 30 years, Sergio Gonzalez has been proud to hand out his business
card, proud of the hard work he put in to become a member of his profession and especially
proud of that profession's rock-solid reputation.
Accounting giant close to finishing investigation
February 19, 2002. Faced with speculation about a promised internal report into how its
employees went about destroying documents relating to client Enron Corp., accounting giant
Andersen and its law firm were hurriedly putting the finishing touches on their investigation
Enron is still an impact player
February 19, 2002. Investors' sudden obsession with accounting irregularities is likely to weigh
on the stock market throughout 2002, raising the specter of a third consecutive down year on
Wall Street for the first time since World War II.
Acting chief of Enron vows rapid legal attack
February 18, 2002. Enron Corp. is planning a broad legal assault against those who helped bring
down the company, according to acting Chief Executive Stephen Cooper, the corporate rescue
artist who was selected three weeks ago to put the company back on the road to solvency.
Watching a free-market correction
February 18, 2002. After the largest bankruptcy in American history, it is no surprise that
commentators and politicians are waxing loquacious about the dangers of deregulation (energy in
particular), the unreliability of markets and the urgent need for oversight and legislation to keep
the system fair and honest.
February 18, 2002. Jack Ciesielski publishes the Analyst's Accounting Observer report from his
office in downtown Baltimore. He is also the owner of R.G. Associates, Inc., an investment
research and portfolio management firm.
Accounting rules hid Enron's debt
February 17, 2002. Along with the debt it spirited away in partnerships, Enron hid billions in loans
in plain sight.
Northern's light gets dimmed
February 17, 2002. Not long ago, Northern Trust Corp. could do no wrong.
Conflicts common in audit oversight
February 17, 2002. In an alarming number of cases, corporate directors responsible for
overseeing outside auditors at the nation's most troubled companies are beset with potential
conflicts of interest, a Tribune analysis shows.
Senators to examine Enron's tax tactics
February 16, 2002. The Senate Finance Committee plans to investigate reports that Enron paid no
taxes in recent years, with senators particularly curious about the company's use of offshore
February 15, 2002. When a reputation seems soiled beyond repair only the toughest stain
remover will do.
Enron Whistleblower Says Fastow Wanted Her Fired
February 15, 2002. Enron whistle-blower Sherron Watkins yesterday painted a picture of
duplicity and deceit at the once high-flying company, telling congressional investigators that two
top company officers kept then-chief executive Kenneth Lay in the dark about improper
partnerships that hid more than $1 billion in debt.
GOP memo hits Democrats as beneficiaries of Enron
February 14, 2002. In its strongest act of defense since Enron Corp.'s collapse became a
political issue, the Republican Party began circulating a memo this week targeting Democrats who
have tried to make electoral hay of ties between the GOP and the fallen energy company.
2 key Enron execs placed on leave
February 14, 2002. Two men accused of failing to help control financial partnerships that helped
topple Enron Corp. have been asked to take a leave of absence, their lawyers said Wednesday.
Bill ready on stock options reporting
February 13, 2002. Legislation prompted by the collapse of Enron Corp. that would require
companies to deduct the cost of stock options from their earnings is slated to be introduced in the
U.S. Senate Wednesday.
Enron board aware of deals
February 13, 2002. Enron Corp. executives repeatedly briefed the company's board of directors
about the suspect partnerships and murky accounting that later brought down the energy giant,
internal Enron documents show.
Andersen encounters 2 setbacks
February 13, 2002. Rupert Murdoch's News Corp. on Tuesday became the second major media
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