The Guardian August 28, 2002


Ex-Enron executives seek millions in severance

Several former Enron Corp insiders who earned a combined US$25 million 
in the year before the company crashed are asking for millions more in 
severance pay.

The list of executives includes Rebecca Carter, the wife of former chief 
executive Jeff Skilling, and former vice chairman Mark Frevert, who has 
asked for more than US$6 million in severance pay. Carter, who was Enron's 
corporate secretary before marrying Skilling in March, wants another 
US$875,000.

The executives are among 46 who opted not to participate in a settlement 
that would provide at best US$13,500 in severance to each of the workers 
laid off as a result of Enron's bankruptcy. The Houston-based energy 
merchant said in a court filing that it has paid US$32 million in severance 
thus far.

US Bankruptcy Judge Arthur Gonzalez said he would decide by the end of the 
month whether those who opted out of the severance deal are entitled to 
anything, and if so, how much.

If Gonzalez rules the insiders are entitled to more than they would have 
been paid under the deal, those who have agreed to it can back out and send 
the process back to the drawing board.

Frevert, who was made vice chairman after Skilling's sudden departure last 
year, was paid US$17.3 million in the year before Enron crashed. He claims 
that he is owed US$6.6 million in severance, a calculation that was based 
in part on his performance bonus.

The bankruptcy creditor's committee and Enron both said they needed more 
time to investigate Frevert's claim. Frevert's "employment and termination 
package was substantially increased shortly before the filing".

Carter was paid US$477,500 in the year before the crash. John Sherriff, the 
former head of Enron Europe, received US$4.3 million in the same period and 
has asked for US$1.6 million more.

Kenneth Dodson, a former executive in Enron's engineering division, has 
asked for US$210,000 on top of the US$319,000 he was paid last year. 
Charles Garland was paid US$1.6 million last year as a managing director at 
Enron, and wants US$892,000 in severance.

The executives' employment contracts were nullified on the day Enron filed 
for Chapter 11 bankruptcy on December 2, 2001.

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