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- Subject: organizational changes
- we are making a number of significant organizational changes . these changes
- are intended to accomplish four key objectives :
- first , we need to realign all our wholesale businesses around the successful
- business model developed over the last decade in north america and europe .
- this model relies on extensive physical and transactional networks built
- around a relatively small strategic asset position .
- second , we need to significantly streamline corporate reporting
- relationships . particularly with joe sutton , s departure , the ability to
- directly manage the day - to - day activities of 15 independent business units
- has become increasingly difficult .
- third , we need to accomplish these changes without , in any way , compromising
- the ongoing profitability of all our businesses and without delaying or
- hindering our effort to monetize a significant portion of our lower - yielding
- asset positions .
- and fourth , as always , we need to take advantage of the reorganization to
- redeploy our talent into our highest value opportunities .
- enron wholesale services
- today , we are forming enron wholesale services ( ews ) which will consolidate
- our global wholesale businesses . the closer alignment of our wholesale
- businesses will accomplish the following : ( 1 ) enhanced communication and
- coordination across business units , ( 2 ) more rapid deployment of people to
- higher valued opportunities , ( 3 ) more effective prioritization of
- opportunities across the wholesale business , and ( 4 ) more rapid extension of
- enron , s wholesale business model and capabilities into new industries and
- markets .
- enron wholesale services will include our current north american , european
- ( including japan and australia ) , global markets , and industrial markets
- operations , and will be expanded to include enron , s net works business unit
- as well as a new unit ) enron global assets . in addition , enron , s merchant
- businesses outside of north america and europe will be integrated into this
- new structure as described below .
- mark frevert , currently chairman of each of our wholesale units , will assume
- the role of chairman and ceo of enron wholesale services . greg whalley ,
- currently chairman and ceo of enron net works , will join mark in the office
- of the chairman as president and chief operating officer .
- providing further impetus for these organizational changes , several of our
- international business unit leaders have elected to move into new leadership
- positions :
- rebecca mcdonald , currently ceo of enron apachi , will join ews as president
- and ceo of enron global assets . enron global assets will have responsibility
- for managing all of enron , s existing energy asset portfolio outside of north
- america and europe . joining rebecca in the office of the chairman as coo
- will be jim hughes , currently coo of enron apachi . rebecca and jim will
- report to the ews office of the chairman .
- sanjay bhatnagar , currently ceo of enron india , has joined ebs as ceo for the
- middle east and asia region . sanjay will be responsible for building our
- broadband business in this region and the current ebs team in this region
- will report to sanjay . in this role , sanjay will report to the ebs office of
- the chairman . in addition , sanjay will continue to remain responsible for
- enron , s wholesale energy business in india and will transition this business
- into enron global assets in the near future .
- diomedes christodoulou , currently co - ceo of enron south america , has joined
- ebs as chief commercial officer . diomedes will be located in london and will
- focus his origination activities on global opportunities , with near term
- attention to the wholesale and enterprise sectors . diomedes will report to
- the ebs office of the chairman .
- jim bannantine , currently co - ceo of enron south america , will be joining ees
- to lead ees , commercial efforts outside north america and europe . in order
- to ensure a smooth transition for our south american businesses and to
- facilitate our asset sales activities , jim will remain in south america for
- at least the next several months and continue to serve as ceo of enron south
- america . throughout the transition , jim will report to cliff baxter and to
- the office of the chairman of enron wholesale services . following the
- transition , jim will join ees .
- in addition to these changes in our international asset operations
- activities , we are making the following changes in our merchant wholesale
- businesses and the commercial support functions :
- enron net works
- louise kitchen will assume greg , s previous responsibilities as president and
- ceo of enron net works , reporting into mark and greg .
- enron americas
- concurrent with the transfer to enron global assets of responsibility for
- operating enron , s south and central america asset base , all trading ,
- marketing , and new asset development activities in these regions will report
- into a new entity , enron americas . enron americas will have responsibility
- for all wholesale merchant businesses across north , central and south
- america . dave delainey , president and ceo , and john lavorato , chief
- operating officer will comprise the office of the chairman for enron
- americas .
- enron europe
- the enron europe organization , which includes enron , s businesses in australia
- and japan , and enron metals , remains unchanged under the leadership of john
- sherriff , president and ceo , and michael brown , chief operating officer .
- enron global markets
- enron global markets , under the leadership of mike mcconnell , president and
- ceo , and jeff shankman , chief operating officer , will continue to have
- responsibility for enron , s middle east and lng operations . with the
- exception of ecoelectrica in puerto rico , all operating power plants and
- associated personnel in the caribbean and central america will transfer to
- enron global assets . enron global markets will also continue to manage the
- commodity businesses in crude and products , coal , weather , insurance ,
- equities , interest rates , foreign exchange , and agricultural products .
- enron industrial markets
- enron industrial markets , organization , under the leadership of jeff mcmahon ,
- president & ceo , and ray bowen , chief operating officer , remains unchanged .
- commercial support for ews
- the commercial support functions for ews will remain with , and be managed by ,
- the individual business units . we are creating no incremental overhead in
- the creation of ews , and in fact hope to reduce our operating costs by more
- efficient utilization and sharing of resources across ews .
- to this end we have asked several people to take on an expanded role across
- ews in addition to their ongoing roles within their business units . these
- newly defined roles are as follows :
- mid and back office operations ) sally beck will lead mid and back office
- operations across ews . these services will become part of enron net works ,
- with sally reporting to louise kitchen and rick causey , executive vice
- president and chief accounting officer . this alignment creates a coordinated
- services organization with it and e - commerce platforms to support the
- wholesale businesses and to maximize opportunities to commercialize these
- services . mid and back office services for all commercial activities will
- continue to be organized with dedicated operations controllers responsible
- for specific commodities and / or geographic locations .
- legal ) mark haedicke will serve in the role of general counsel for ews .
- regulatory and government affairs ) this function will remain organized on a
- regional basis . rick shapiro will support all ews businesses operating in
- the americas , and mark schroeder , who is based in london , will support all
- european and eastern hemisphere operations . rick and mark will also continue
- to support all other enron businesses operating in their respective regions
- and will continue to report to steve kean , executive vice president and chief
- of staff .
- public relations ) this function is also organized primarily on a regional
- basis . eric thode will have responsibility for north american activity ,
- enron net works , and enron industrial markets . jackie gentle will continue
- in her role for enron europe ( including japan and australia ) and john ambler
- will have responsibility for activity outside north america and europe as
- well as providing support for enron global markets and enron global assets .
- these individuals will also continue to have a split reporting relationship
- to mark palmer , vice president of communications .
- business analysis and reporting ) wes colwell will expand his role to cover
- ews reporting in addition to his current role in north america .
- attached for your review is an organization chart for enron wholesale
- services which summarizes the changes described here . as this organization
- continues to evolve we will keep you informed of any additional changes .
- enron global exploration and production
- and enron wind
- as part of our company - wide initiative to examine our assets and investments
- around the world , we are considering a variety of options with respect to
- egep and ewc . as a consequence , we are putting these businesses under cliff
- baxter , s direction . jeff sherrick , ceo of egep , and jim noles , ceo of enron
- wind , will report to cliff .
- corporate staff
- we are consolidating the corporate staff functions : human resources ,
- government affairs , public relations / communications and administration . in
- that regard , cindy olson , executive vice president of human resources and
- community relations , will report to steve kean , executive vice president and
- chief of staff .
- committee structure
- in light of the increased leadership opportunities created by enron , s
- growth , the executive committee will be expanded to include more of our
- business unit leaders . the primary role of this committee will continue to
- be the communication of relevant information across enron , s businesses and
- the coordination of activities across those businesses . we will also be
- drawing on this group to lead company - wide initiatives such as the
- performance review process and evaluation and creation of new businesses .
- the executive committee membership is shown on the attached list .
- we are also forming a new committee ) the enron corporate policy committee .
- this group will be responsible for overall corporate policy , personnel
- management policy and corporate strategy . the enron corporate policy
- committee membership is also shown on the attached list .
- we are confident that these changes will align our talent and our capital to
- our highest return opportunities . please join us in congratulating and
- supporting all of these individuals in their new roles .
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