Ken Lay was betrayed by his staff
The following is a Counterpoint column:
By Jack Elam
From 1978 to 1985, I was chairman of the Process Gas Consumers Group with headquarters in Washington at the main office of our counsel — Sutherland, Asbill, and Brennan. PGC is a group of Fortune 500 users of large amounts of natural gas. Our primary concerns were adequacy of supply and cost. As supplies diminished, our efforts increased. (For Cone Mills, I entered into seven contracts to assure delivery of gas to our finishing plants.)
We got the attention of President Reagan and the Congress. I met with the president and his staff with about 12 invited members of other interested groups, and urged that he use his influence to protect supplies and direct that price be based on a free market. (We were told he could only stay for 15 minutes. He stayed for 30 and told us a very funny story about lawyers and seemed entirely relaxed. The next day we invaded Grenada.)
At this time Ken Lay was the CEO of Houston Natural Gas Co., a relatively small supplier. I asked Ken to have lunch with me and speak at our next PGC meeting. He accepted, was well received, and strongly supported our program.
Ken and I were asked to appear before Senate and House committees to discuss our views on natural gas issues, which we did. During this time, we lunched together five or six times and became friends. I got to know him well and admired him, which I still do. One trait we share is that neither of us is a "figures" man. (I struggle with my bank statement each month.)
In retrospect, I know that he built Enron with his personality and his marketing ability. He surely had to depend on people he trusted, and I believe with all my heart that he was ultimately betrayed by those people he depended upon to do the numbers while he put together deals to build Enron.
Along with the Enron employees who have suffered terrible losses, he will be destitute and may go to prison. If he does, that will be a miscarriage of justice. It is too bad that the media have already ruined his reputation before a verdict is reached in his trial. The media coverage may make a fair trial impossible.
The writer lives in Greensboro.
Comments (16)
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Mr. Elam, I'm not yet convinced. The world is strewn with savage wake from the Cult of Personality.
Charm is often very dangerous.
It's clear that Kenny did not act alone, that there are many other Heads of Clout complicit it the Enron fiasco ... but as a composite, they clearly acted in non-commonweal and wholly self interested ways - the quintessential corporate slime balls.
Posted on March 14, 2006 5:34 AM
The Cult of Personality - Living Colour
Look into my eyes, what do you see?
Cult of personality
I know your anger, I know your dreams
I’ve been everything you want to be
I’m the cult of personality
Like mussolini and kennedy
I’m the cult of personality
Neon lights, a nobel prize
The mirror speaks, the reflection lies
You don’t have to follow me
Only you can set me free
I sell the things you need to be
I’m the smiling face on your t.v.
I’m the cult of personality
I exploit you still you love me
I tell you one and one makes three
I’m the cult of personality
Like joseph stalin and gandi
I’m the cult of personality
Neon lights a nobel prize
A leader speaks, that leader dies
You don’t have to follow me
Only you can set you free
You gave me fortune
You gave me fame
You me power in your god’s name
I’m every person you need to be
I’m the cult of personality
Look into my eyes, what do you see?
I’m every person you need to be
I’m the cult of personality
Posted on March 14, 2006 5:39 AM
Jack, you hit a button.
Your defense reminds me of the most common thing kids say:
"IT'S NOT MY FAULT!"
Of course, Ken Charsima says, "I am innocent of all charges against me."
http://www.kenlayinfo.com/public/default.aspx
There is always another side of the story.
http://www.hereinreality.com/enron.html
I'm sure some of this is trumped-up; like all things, nothing is Absolute. But where there's smoke, there's fire, or at least something going on.
Posted on March 14, 2006 5:57 AM
"Along with the Enron employees who have suffered terrible losses, he will be destitute "
If you really believe that Kenneth Lay will be destitute after all is said and done, I'd like to sell you a bridge
Posted on March 14, 2006 7:40 AM
Let's see here. Sympathy... sympathy... I used to have this huge mound of sympathy around here somewhere. Must have spent it all on starving infants in Sudan. I'll have to check with my sympathy accountants.
Seriously, I can't imagine someone running a huge company without being able to balance their checkbook. How can you "make a deal" with anyone when you don't even know what you have to offer? Why would anyone in good conscience try to make decisions without even a basic overview of what's going on in the company?
Every time some high-rolling shyster comes to trial for ruining thousands of lives with their greed, the woodwork seems to explode with people shouting about how innocent he must be because he's "a real nice guy... salt of the earth... goes to church and treats kittens ever so gently." Guess what? No one is interested. In court, all that matters is what did he do, and what happened as a result?
And this should be a warning to other CEO's out there. If you can't balance your checkbook, either take a course and pay attention to business, or give up your $37 million salary. Getting puppies to love you is no defense for fraud and fiduciary failure.
Posted on March 14, 2006 8:45 AM
On the contrary. I read just last week that Mr. Lay is down to his last $750,000. Of course he may have moved some of his assets around, but still, he's probably only got two or three homes left. How can you expect a man to live like that?
But seriously, I don't profess to know more than the letter-writer, but my skepticism of Lay's innocence is very high. I work for a successful company in corporate America, and I cannot imagine the disconnect that Lay's defenders are saying existed between him and the numbers guys. It just doesn't add up. And by the author's admission, Lay built Enron on his own charisma. Perhaps the author was victim of the same charm that many others bought into.
Posted on March 14, 2006 8:49 AM
Poor ole Kenny. You all need to leave him alone. He had no idea the books were cooked...he was too busy passing out checks to congressmen and Senators.
Poor ole Kenny. He is just a victim.
Posted on March 14, 2006 8:55 AM
Personal responsibility, anyone? Anyone?
Posted on March 14, 2006 10:41 AM
Was Mr. Lay "under oath" when he said he is "innocent of all charges"? (Remember that in America, one can lie if he is not "under oath")
Posted on March 14, 2006 10:49 AM
You folks seem to have done a wonderful job smacking down Mr. Elam. Good work! Anything I add would be superflous.
Posted on March 14, 2006 10:57 AM
Why have sympathy for Lay if he becomes destitute and goes to prison?
Should that happen he would at least have a bed to sleep in, food to eat, medical care when needed, TV to watch on occasion, and the possibility of spending time in one of America's "terrible" Federal Penitentiary!
Shalom
Posted on March 14, 2006 11:34 AM
Spooge,
My wife accuses me of splitting hairs, so forgive me if that's what I'm doing here, but I don't think we're bashing Mr. Elam. At least that wasn't my intention, so if that's the way it came across, I apologize. Rather, I think Ken Lay is the pinata here; Mr. Elam has just provided the topic for our collective bashing.
Posted on March 14, 2006 11:50 AM
I actually agree that Mr. Lay could have been completely ignorant of what was going on. I see a lot of CEO's, Presidents, and head honchos that have absolutely no idea what is going on, how to balance a checkbook, and very little technical/detail ability. Many of these folks are no more than great politicians with lots of charisma. Their main product is themselves.
They often are extremely overpaid puppets who meet and greet and shake hands with the right people.
However, I also feel that they are getting paid big bucks to be responsible for the company they are running. And if fit hits the shan, they should be where the buck ultimately stops. Throw him in jail and let him eat crackers and sardines for the rest of his life just like the folks that had their lives ruined while he smiled and lived high on the hog.
Posted on March 14, 2006 11:59 AM
Holy cow. Look at all these people agreeing. I think this is probably the first time I've seen it on this forum.
Let's sing Kumbaya or something. :)
"I think Ken Lay is the pinata here; Mr. Elam has just provided the topic for our collective bashing."
Well said, Howie G.
Posted on March 14, 2006 3:11 PM
Yellow Dog,
I am very disappointed in you. The film footage of Kenny Boy addressing employees is so damning, there is NO way you could defend him. All of the information coming out has put him right in the loop. As Grandma Pyle would say, "Shame, shame, shame".
Posted on March 14, 2006 7:44 PM
Yellow Dog,
I KNOW you did not defend Kenny, but saying he didn't Know what was going on, is too close for comfort.
Posted on March 14, 2006 7:46 PM