Table: What the Subcommittee Found
-- As early as 1999, Arthur Andersen told the board's audit committee, headed by Richard Jaedicke, that Enron was a "maximum-risk" client, was "pushing the limits," and was "at the edge" of accounting practices. The board never asked Andersen to adopt a more prudent approach.
-- In 2000, the compensation committee, chaired by Charles LeMaistre, approved $750 million in cash bonuses to Enron executives in a year when the company reported net income of $975 million. Apparently, no one on the committee added up the numbers.
-- The compensation committee approved a credit line of $7.5 million for CEO Lay and allowed him to repay loans with stock. Records show Lay cashed out $77 million in one 12-month period.
-- When directors first caught wind of whistle-blower Sherron Watkins' memo, not a single director asked for her name or for a copy. Among other things, Watkins expressed concern over private partnerships subject to review by the finance committee chaired by Herbert Winokur.