Martin Lin

Norma,

Thanks for your excellent suggestion of using a retention bonus for Martin
Lin in order to address both the issues of compensation and retention for
him. As I mentioned during our meeting, just my small team within research
has lost 3 people over about the last 2 years, and we have had a hard time
recruiting good candidates. Last year we made an offer to a person
graduating from UT (MS in computational finance) of 75K plus 25K signing
bonus. He replied that he would like to work at Enron but was already in
the position of turning down an offer with a base salary above $100K.
Martin is a very skilled individual with a Ph.D. in electrical engineering
and almost two years experience at Enron. He would be very difficult (and
expensive) to replace. For this reason I feel it necessary to be proactive
in finding ways of retaining him as an employee.

Please let me know if we have a green light to go forward with a 1-year
retention bonus of 10K and a raise to 87K base salary for Mr. Lin. I would
plan to then give Martin an additional raise at his next review period.

Regards,

Stinson
x34748