Enron Mail

Subject:FW: Your new CFO spot and the job I want
Date:Wed, 24 Oct 2001 17:09:03 -0700 (PDT)

Ken per my voice mail......thanks.

-----Original Message-----
From: =09Watkins, Sherron =20
Sent:=09Wednesday, October 24, 2001 4:14 PM
To:=09Olson, Cindy
Subject:=09FW: Your new CFO spot and the job I want

Cindy, I sent this to Jeff McMahon today. I wanted you to see it. You can=
forward it to Ken if you'd like - I am very interested in speaking with hi=
m as soon as that can be arranged. I very much appreciate your insightful =
and professional support of me in all of this from day one! Thanks, Sherro=

-----Original Message-----
From: =09Watkins, Sherron =20
Sent:=09Wednesday, October 24, 2001 4:12 PM
To:=09McMahon, Jeffrey
Subject:=09Your new CFO spot and the job I want

Jeff, Congratulations, you deserve the job and can do it superbly! You kno=
w you will need to replace Ben Gilson as Treasurer - possibly with Bill Bro=
wn. =20

My issue, and I feel very strongly about this, is that I want to be on the =
crisis management team to determine how we save our trading franchise. It =
can disappear over night and I believe there's more bad news coming re: the=
se raptor deals (ie, restatement). I have clearly proven myself to be the =
only person at Enron that had the character, at great risk to my own career=
, much less personal risk, to go to Ken Lay and let him know what was going=
on here. I resent all these late comers joining the band wagon - it's dam=
n easy to make a statement now, when Ken has made the hard decision to unwi=
nd these deals and write them off. Mainly I resent being stuffed into a ho=
lding tank, I should not be the pariah here! Despite your comment to me se=
veral weeks ago when I told you that's how I felt and you replied "what did=
you expect?" I have been professional in this 100%, I went to Ken and Ken=
alone, in contrast to yesterday's VP Jim S. who put Ken on the spot by ask=
ing unanswerable questions at the all employee meeting. I hope to meet with=
Ken Lay soon. But I'd like to talk to you about my role in the 'inner cir=
cle', because I firmly believe I deserve it and have proven so by my past e=
valuations of the negative impact of these structures and then by my action=
s in doing something about it. You can help me with your endorsement of me=
to Greg Whalley, Mark Frevert and Ken Lay. I hope I have it. Thanks and =
good luck in the new job, Sherron

-----Original Message-----
From: =09Enron Announcements/Corp/Enron@ENRON On Behalf Of Ken Lay- Chair=
man of the Board@ENRON
Sent:=09Wednesday, October 24, 2001 3:50 PM
To:=09All Enron Worldwide@ENRON
Subject:=09Jeff McMahon Named CFO

Today we announced the appointment of Jeff McMahon as Enron's chief financi=
al officer. In my continued discussions with the financial community yeste=
rday and today, it became clear that this move was required to restore inve=
stor confidence. Jeff has unparalleled qualifications and a deep and thoro=
ugh understanding of Enron. He is already on the job and hard at work on t=
he issues before us. Andy Fastow will be on a leave of absence from the co=
mpany. =20

Jeff had been serving as chairman and CEO of Enron Industrial Markets. He j=
oined Enron in 1994 and spent three years in the London office as chief fin=
ancial officer for Enron's European operations. Upon returning to the U.S.=
, Jeff was executive vice president of finance and treasurer for Enron Corp=
. In 2000, he was named president and chief operating officer of Enron Net=

I know all of you are concerned about the continuing decline in our share p=
rice. I am too, and we are working very hard to turn it around. Appointin=
g Jeff as CFO is one important step in that process. But most of the solut=
ion involves just continuing to do our jobs with excellence. The fundament=
als of our business are strong, and I think the market will begin to see th=
at as we continue to perform.

Please join me in giving Jeff your full support, and thank you for all of y=
our continued hard work.