FW: Daily Update 

 -----Original Message-----
From: 	Shields, Jeff  
Sent:	Wednesday, November 07, 2001 8:30 AM
To:	'Ken Lay- Chairman of the Board & CEO@ENRON'
Subject:	RE: Daily Update

On Behalf of Jeff Shields

So when is Ken Lay going to tell us something with substance in these reports. This morning I listened as four different co-workers came in and logged on and snickered or made other negative remarks in response to today's email on behalf of Ken Lay. One person said she wished we would stop getting these emails because they are "empty." All we are getting are generalities and hollow comments about yesterdays news. Lets hear some positive statements from Ken Lay making clear that the financial actions of Enron are clean. I would appreciate being told exactly what it is that the SEC is looking  for. Many in the Portland office are asking just who are these Board members and what is it that drives our Senior Management? We know their names, we don't understand their values. I want to see leadership. Where is Ken and the Board? Mayor Guiliani got out in the public after the World Trade Center disaster and reassured the public. He became a leader. He didn't sit in his office and have a ghost writer send empty emails to city employees. 

I watched as Rite Aid went through something similar to what Enron is going through. Enron would be well served to study the Rite Aid situation and learn from their experience. Rite Aid stumbled along for 6 months while the Board and CEO defended their actions and were not able to face reality until the company stock fell from $50 to $3. You need to make dramatic changes in the management structure or else management needs to step out and publicly restore confidence. It does NO GOOD for the Board and Ken to stand behind management and business groups only to turn around and put individuals "on leave" or close those business groups you stood behind a day earlier. 

I noticed how little confidence the top executives at Enron had in this company when they sold off hundreds of millions of dollars in stock between November and February. Many of us see that as the beginning of the moral bankruptcy at the top of Enron. We put our retirement in your hands and you pilfered it. I had so much faith in Enron's management that I have taken my annual bonus in stock options. To me that is a duty to demonstrate my commitment to Enron. Rumors are circulating in the Portland office that the Board is not likely to fund a bonus pool this year. Now that is inspiration! Is that true? 

You MUST instill confidence in your employees TODAY. You claim that Enron employees are your most valuable assets. You had better treat them as such. Email such as this one DO NOT INSPIRE confidence. This is not Enron's proudest moment. I enjoy working for the company. I take pride in my work and do my job honestly and open. The deals I bring in to this company are done in the spirit of mutual benefits with our counter parties. I was disappointed to get a copy of a PR piece in my home mail yesterday with interviews and profiles of "Three Men."  Reading their values and accomplishments led me to believe these guys are motivated not by family and ethics but rather by material possession. This is the intellect of failure. If your driven simply to own a boat and your measure of success was recognized when you bought a big house, there is a very high probability that you will breech the line of ethical (and perhaps legal) financial actions in order to have more. 

Please send us a statement from Ken Lay and the Board telling us about the Cultural Values they are going to strive to instill in the company. I think a huge statement would be made by having the Board of Directors and Ken Lay personally reinvest the hundreds of millions of dollars that you have taken out of this company back in Enron stock TODAY. 

Ken Lay should come to Portland and give us reassurance that the earnings from this business unit mean something. Ken needs to be a leader. Please, no more ghost emails.

 -----Original Message-----
From: 	Enron Announcements/Corp/Enron@ENRON   On Behalf Of Ken Lay- Chairman of the Board & CEO@ENRON
Sent:	Tuesday, November 06, 2001 8:23 PM
To:	All Enron Worldwide@ENRON
Subject:	Daily Update


Today was a very difficult day for us as market uncertainty continued.  Recent news reports, including The Wall Street Journal article today, have speculated about possible mergers, takeovers and equity investors as options that Enron is considering.  The reason you have not seen us responding to these reports is that it is our corporate policy not to comment on market speculation.  However, I will tell you that we are evaluating all options to protect the financial stability of this company.  I will keep you updated on developments as they occur.

