Directors To Their Boards WASHINGTON, Jan. 25 /PRNewswire/ -- Citing the financial ruin Enron (NYSE: ENE) caused its 21,000 employees, and the financial loss caused to millions of working men and women who were invested in Enron through their pension funds and retirement accounts, the AFL-CIO called on companies to not re-nominate Enron directors for election to their respective corporate boards. Enron's directors also serve as directors on public companies such as Qualcomm, Lockheed Martin, and Motorola. "The future retirement security of practically every American worker was hurt by the collapse of Enron. In our opinion, directors who permitted the accounting deception that led to the collapse of a company worth over seventy billion dollars are not suited to serve on other boards," said Richard Trumka, Secretary-Treasurer of the AFL-CIO. Failures of the Enron directors include: * Waiving conflict-of-interest rules to let Enron executives participate in related-party transactions that led to a $1.2 billion reduction in shareholder equity; * Failing to question Enron's use of off-balance-sheet entities to remove debt and losses from Enron's financial statements; and * Approving Enron's annual report to shareholders without ensuring Enron's financial statement disclosure was straightforward and comprehensible. In a letter to the nominating committees responsible for selecting director candidates, the AFL-CIO urged companies with Enron directors to reconsider their future nomination. These directors could become the target of shareholder opposition as shareholders withhold votes from directors they feel are unqualified. Many of these directors' terms expire at their companies' annual shareholder meetings later this spring. "Enron's directors need to be held accountable for their record; barring Enron's directors from future service at other companies will hopefully prevent this type of catastrophic loss for workers from happening again and will help restore investor confidence in the corporate governance system," explained Trumka. The AFL-CIO's letter to companies with directors who also sit on the Enron board follows the resignation of former Enron CEO Kenneth Lay from the boards of Eli Lilly and Compaq Computer. Retirement security for working Americans is one of the top issues for the AFL-CIO. The AFL-CIO represents 13 million working men and women who participate in the capital markets as investors through defined benefit and defined contribution plans, as well as through mutual funds and individual accounts. AFL-CIO affiliate union sponsored benefit funds have over $400 billion in assets and hold an estimated 3.1 million Enron shares. Public Company Directorships of Enron Directors Robert Belfer Westport Resources Corporation Norman Blake Comdisco Inc. Owens Corning Corporation Ronnie Chan Hang Lung Group Standard Chartered PLC Motorola Inc. John Duncan Group 1 Automotive Inc. Wendy Gramm AMVESCAP PLC/Invesco Funds Group Robert Jaedicke California Water Service Group Kenneth Lay NewPower Holdings, Inc. John Mendelsohn ImClone Systems, Inc Frank Savage Lockheed Martin Corporation Qualcomm Corporation Alliance Capital Management John Wakeham Bristol & West PLC Vosper Thornycroft Holding PLC Michael Page International PLC Rothschilds Continuation Holdings AG Herbert Winokur NATCO Group, Inc. CCC Information Services Group, Inc. DynCorp MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X06437314 SOURCE AFL-CIO -0- 01/25/2002 /CONTACT: Kathy Roeder, +1-202-508-6947, or Bill Patterson, +1-202-637-3900, both of the AFL-CIO/ /Web site: http://www.aflcio.org/ (ENE) CO: AFL-CIO; Enron ST: District of Columbia IN: FIN OIL SU: LBR -0- Jan/25/2002 16:01 GMT
AFL-CIO Calls on Companies to Refuse Re-Nomination of Enron
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