Ex-Enron Execs Seek Millions in Severance
By C. Bryson Hull
HOUSTON (Reuters) - Several former Enron Corp. insiders who earned a combined $25 million in the year before the company crashed are asking for millions more in severance pay, a question a bankruptcy judge on Monday said he will answer later this month.
The list of executives includes the wife of former chief executive Jeff Skilling, Rebecca Carter, and former vice chairman Mark Frevert, who has asked for more than $6 million in severance pay. Carter, who was Enron's corporate secretary before marrying Skilling in March, wants another $875,000.
The executives are among 46 laid-off employees who opted not to participate in a settlement that would provide up to $13,500 in severance to each of the workers laid off as a result of Enron's Dec. 2 bankruptcy. The Houston-based energy merchant said in a court filing that it has paid $32 million in severance thus far.
U.S. Bankruptcy Judge Arthur Gonzalez said he would decide by the end of the month whether those who opted out of the severance deal are entitled to anything, and if so, how much.
If Gonzalez rules the insiders are entitled to more than they would have been paid under the deal, those who have agreed to it can back out and send the process back to the drawing board.