FW: Daily Update ,
 -----Original Message-----
From: =09Shields, Jeff =20
Sent:=09Wednesday, November 07, 2001 8:30 AM
To:=09'Ken Lay- Chairman of the Board & CEO@ENRON'
Subject:=09RE: Daily Update

On Behalf of Jeff Shields

So when is Ken Lay going to tell us something with substance in these repor=
ts. This morning I listened as four different co-workers came in and logged=
 on and snickered or made other negative remarks in response to today's ema=
il on behalf of Ken Lay. One person said she wished we would stop getting t=
hese emails because they are "empty." All we are getting are generalities a=
nd hollow comments about yesterdays news. Lets hear some positive statement=
s from Ken Lay making clear that the financial actions of Enron are clean. =
I would appreciate being told exactly what it is that the SEC is looking  f=
or. Many in the Portland office are asking just who are these Board members=
 and what is it that drives our Senior Management? We know their names, we =
don't understand their values. I want to see leadership. Where is Ken and t=
he Board? Mayor Guiliani got out in the public after the World Trade Center=
 disaster and reassured the public. He became a leader. He didn't sit in hi=
s office and have a ghost writer send empty emails to city employees.=20

I watched as Rite Aid went through something similar to what Enron is going=
 through. Enron would be well served to study the Rite Aid situation and le=
arn from their experience. Rite Aid stumbled along for 6 months while the B=
oard and CEO defended their actions and were not able to face reality until=
 the company stock fell from $50 to $3. You need to make dramatic changes i=
n the management structure or else management needs to step out and publicl=
y restore confidence. It does NO GOOD for the Board and Ken to stand behind=
 management and business groups only to turn around and put individuals "on=
 leave" or close those business groups you stood behind a day earlier.=20

I noticed how little confidence the top executives at Enron had in this com=
pany when they sold off hundreds of millions of dollars in stock between No=
vember and February. Many of us see that as the beginning of the moral bank=
ruptcy at the top of Enron. We put our retirement in your hands and you pil=
fered it. I had so much faith in Enron's management that I have taken my an=
nual bonus in stock options. To me that is a duty to demonstrate my commitm=
ent to Enron. Rumors are circulating in the Portland office that the Board =
is not likely to fund a bonus pool this year. Now that is inspiration! Is t=
hat true?=20

You MUST instill confidence in your employees TODAY. You claim that Enron e=
mployees are your most valuable assets. You had better treat them as such. =
Email such as this one DO NOT INSPIRE confidence. This is not Enron's proud=
est moment. I enjoy working for the company. I take pride in my work and do=
 my job honestly and open. The deals I bring in to this company are done in=
 the spirit of mutual benefits with our counter parties. I was disappointed=
 to get a copy of a PR piece in my home mail yesterday with interviews and =
profiles of "Three Men."  Reading their values and accomplishments led me t=
o believe these guys are motivated not by family and ethics but rather by m=
aterial possession. This is the intellect of failure. If your driven simply=
 to own a boat and your measure of success was recognized when you bought a=
 big house, there is a very high probability that you will breech the line =
of ethical (and perhaps legal) financial actions in order to have more.=20

Please send us a statement from Ken Lay and the Board telling us about the =
Cultural Values they are going to strive to instill in the company. I think=
 a huge statement would be made by having the Board of Directors and Ken La=
y personally reinvest the hundreds of millions of dollars that you have tak=
en out of this company back in Enron stock TODAY.=20

Ken Lay should come to Portland and give us reassurance that the earnings f=
rom this business unit mean something. Ken needs to be a leader. Please, no=
 more ghost emails.

 -----Original Message-----
From: =09Enron Announcements/Corp/Enron@ENRON   On Behalf Of Ken Lay- Chair=
man of the Board & CEO@ENRON
Sent:=09Tuesday, November 06, 2001 8:23 PM
To:=09All Enron Worldwide@ENRON
Subject:=09Daily Update


Today was a very difficult day for us as market uncertainty continued.  Rec=
ent news reports, including The Wall Street Journal article today, have spe=
culated about possible mergers, takeovers and equity investors as options t=
hat Enron is considering.  The reason you have not seen us responding to th=
ese reports is that it is our corporate policy not to comment on market spe=
culation.  However, I will tell you that we are evaluating all options to p=
rotect the financial stability of this company.  I will keep you updated on=
 developments as they occur.
kenneth.lay@enron.com