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Enron Mail |
Content-Transfer-Encoding: 7bit Return-path: <Mcneillyd@aol.com< From: Mcneillyd@aol.com Full-name: Mcneillyd Message-ID: <14d.3c776a7.291decd3@aol.com< Date: Fri, 9 Nov 2001 21:37:07 EST Subject: Merger Impact on Employee/Retiree Stock Options To: Ken.Lay@enron.com MIME-Version: 1.0 Content-Type: text/plain; charset="US-ASCII" X-Mailer: AOL 5.0 for Windows sub 108 I worked for Enron and Internorth for about 24 years, was elected to the Chairman's Roundtable in 1999, and was severed with early retirement in February 2001. When I retired in February my 10,000+ stock options had a value of about $265,000. At the price of the Enron/Dynegy merger, $10.41 per share, my options have zero value. I know that I am not the only employee/retiree in this position. The 1994 Stock Option Plan, as I read it, does not address what happens when a merger occurs that is approved by the board of directors. What happens now? Do the options die? Do the options get converted to Dynegy stock options in some fashion? I am interested in the answer but not optimistic. Over the years I and other employees were encouraged/enticed into taking part of our annual bonuses in the form of options. In taking these options, I relied on the integrity of the Enron executive leadership that their statements of the good financial shape of Enron were true. In retrospect it appears I should have cashed the options in when I had the chance. Even in early August I could have got close to $100,000 for my options. But again, I believed the statement that there was no bad news coming. The company has preached the values; R.I.C.E.- Respect, Integrity, Communication, and Excellence. Are these only platitudes or were you serious when you honored me for practicing them? Respectfully, J. Douglas McNeilly mcneillyd@aol.com
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