Skilling Resigns From Enron; Lay Resumes Presidency, CEO Duties

Pipeline & Gas Journal, Sept, 2001

Enron Corp, announced on Aug, 14 that its board of directors had accepted the resignation of Jeffrey K. Skilling as Enron's president and CEO. He will continue to serve as a consultant to Enron and its board of directors. Kenneth L. Lay, currently Enron's chairman of the board, will again assume the additional responsibilities of president and CEO and has agreed to extend his employment agreement with the company through the end of 2005.

"I am resigning for personal reasons. I want to thank Ken Lay for his understanding of this purely personal decision, and I want to thank the board and all of my colleagues at Enron," said Skilling. He later acknowledged in an interview that the company's declining stock value weighed heavily in his decision.

"We regret Jeff's decision to resign, as he has been a big part of our success for over 11 years," said Lay. "But, we have the strongest and deepest talent we have ever had in the organization, our business is extremely strong, and our growth prospects have never been better."

Lay, 59, served as Enron's CEO from 1985 until Skilling's election earlier this year. Skilling, 47, had been under enormous pressure in recent months.