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
* 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
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
Westport Resources Corporation
Owens Corning Corporation
Hang Lung Group
Standard Chartered PLC
Group 1 Automotive Inc.
AMVESCAP PLC/Invesco Funds Group
California Water Service Group
NewPower Holdings, Inc.
ImClone Systems, Inc
Lockheed Martin Corporation
Alliance Capital Management
Bristol & West PLC
Vosper Thornycroft Holding PLC
Michael Page International PLC
Rothschilds Continuation Holdings AG
NATCO Group, Inc.
CCC Information Services Group, Inc.
MAKE YOUR OPINION COUNT - Click Here
/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/
CO: AFL-CIO; Enron
ST: District of Columbia
IN: FIN OIL
-0- Jan/25/2002 16:01 GMT
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