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American Morning

Lay Resignation Little Surprise to Enron Employees

Aired January 24, 2002 - 09:05   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JACK CAFFERTY, CNN ANCHOR: Enron Chief Executive Kenneth Lay says he's resigning out of concern for Enron stakeholders. He says all the investigations and federal inquiries are too distracting and will prevent him from focusing 100 percent on reorganizing the company.

After steering the country into bankruptcy, one of the biggest in American corporate history, amid all kinds of allegations of off the books dealings, cover ups and possible obstruction of justice, how would you expect word of Lay's resignation to be received by Enron's employees? Well, let's find out.

We'll ask CNN's Ed Lavandera, who's standing by outside Enron headquarters, down in Houston. Ed, good morning.

ED LAVANDERA, CNN CORRESPONDENT: Good morning, Jack. Well this has actually turned out to be tough assignment this morning, as most people walking into work this morning have no interest in talking about Mr. Lay's resignation. Of course the news was, we understand, e-mailed out to employees last night. And as Mr. Lay has -- also yesterday, earlier in the day, employees had received another e-mail saying that an all employee meeting had been canceled, amid the media frenzy surrounding the story.

And for the most part, the other people that we've talked to, and it doesn't come as much of surprise to people. Mr. Lay is telling folks that unfortunately, with the multiple inquiries and investigations that currently require much of his time, it is becoming increasingly difficult to concentrate fully on what is most important to Enron's stakeholders.

And one employee, who we did manage to get to talk with us this morning says that it's just another thing that they have to deal with in what has been a long road on this Enron story.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: ...resigning?

UNIDENTIFIED FEMALE ENRON EMPLOYEE: Yeah, I got an e-mail late last night. So, I found out that way. But, it's interesting news. Everything that we're finding out is, you know -- it's just something one after another, you know. And it's been interesting working here.

UNIDENTIFIED FEMALE: Is it...

(END VIDEO CLIP)

LAVANDERA: Some of the workers we've had a chance to speak with privately over the last couple of hours also say that, as we've mentioned, just aren't surprised by this move. And a lot of people saying that it would be a good thing for the company as moves it forward.

Mr. Lay saying that someone will be brought in on an interim basis to head up the restructuring of the company and as they move forward in that process, which, of course, will be another long road for this company, as well.

Ed Lavandera reporting live from Houston. Jack, back to you.

CAFFERTY: Ed, do you know of any plans that Mr. Lay may have to meet with any of his employees to talk about any of this with them?

LAVANDERA: The e-mail that went to employees yesterday mentioned that there is a plan in the works to meet inside of the building with all of its employees. Now we understand from sources, that that meeting, which was supposed to have been held yesterday, wasn't going to include Mr. Lay, that was going to include four other Enron executives. But, of course, Mr. Lay still remains on the board at Enron. And whether or not he will speak with all employees isn't exactly clear at this point.

CAFFERTY: All right. Thanks, Ed, very much. Ed Lavandera reporting live in Houston.

Interesting choice of words in Kenneth Lay's resignation announcement. "Stakeholders" as avoid -- opposed to "shareholders."

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