I do not object to the idea but I don't feel like it is absolutely necessary to keep the key players on board.  I am working on a new contract for Jim Hughes that should keep him happy.  Same thing for Bob Hayes.  McCarty just got 60,000 share option! as part of an old contract.  Hayslett is fine.  We just did a new contract for Dave Nuebauer(VP Marketing for NNG) and Steve Harris is in good shape.  I got a some options during the year for our key regulatory people (Kilmer and Mary kay Miller.)  Cordes is under a new contract (3 months old)

If however you do it for the other groups EGS will need to be included from a political standpoint.  I tend to try and stay on top of this throughout the year.  The key question we are going to have to answer is whether or not bonuses and LTI's will be awarded as usual.

You may want to check on one thing.  In 1997 or 1998 Skilling capped the bonuses of Section 16b officers.  He told me it was required under the compensation program since Enron had a loss ( Jay Block and MTBE write-off).  The reduction in the cash bonus was made up with a grant of restricted stock for the difference.  I assume this was correct.  If the compensation program has not been amended you might have restrictions on cash awards to 16b officers that should be communicated.  That could cause some issues!  I doubt people would be thrilled to have their compensation reduced due to the actions of those who departed with a lot of money!

Let me know if you need to discuss further.

 -----Original Message-----
From: 	Whalley, Greg  
Sent:	Thursday, October 11, 2001 3:23 PM
To:	Horton, Stanley
Subject:	Confidential

Given what our announcement next week is going to look like,  do you think it is a good idea to issue some options to some key players soon after the announcement.  as sort of a down payment on bonus perhaps.  i think it would be best to keep it to a reasonably small group.  lets try to talk tomorrow