Date: Fri, 9 Nov 2001 21:37:07 EST
Subject: Merger Impact on Employee/Retiree Stock Options
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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
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
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
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?
J. Douglas McNeilly