Sally,

Just an FYI - I sent this email out to your directors on 09/14 after we spoke 
on the telephone.

Regards,

Todd Burke
X39437

  
---------------------- Forwarded by Todd Burke/NA/Enron on 09/18/2000 10:05 
AM ---------------------------


Todd Burke
09/14/2000 09:45 AM
To: Bob M Hall/NA/Enron@Enron, Brenda F Herod/HOU/ECT@ECT, Peggy 
Hedstrom/CAL/ECT@ECT, Steve Jackson/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT, 
Stacey W White/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT, James 
Scribner/Corp/Enron@Enron, Mary Solmonson/HOU/ECT@ECT, Sheri 
Thomas/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron, Brent A Price/HOU/ECT@ECT
cc:  

Subject: Upcoming Compensation Analysis


To All Energy Operations Directors:

My name is Todd Burke and I'm a Compensation Specialist with ENA Human 
Resources (see attached bio).  As you know, Sally Beck has requested that I 
conduct a comprehensive analysis of the current pay arrangements for all 
Energy Operations staff.  The purpose of this analysis will be to ensure that 
the department's current pay arrangements are in line with the competitive 
marketplace.  Each component of pay will be examined individually and within 
the context of Enron's compensation philosophy (e.g., base salary, bonus, 
long-term incentives and total compensation).

The process will begin with a series of interviews which will be conducted in 
two stages:  

Stage 1-Data Gathering:  the focus of this stage will be upon gathering data 
around your perceptions of your group's current pay arrangements and give you 
the opportunity to address any of the internal and external inequities you 
perceive to exist.  

Stage 2-Job Matching:  the focus of this stage will be on job matching - we 
will establish a mutually agreed upon time to meet and discuss which 
positions in our salary surveys most accurately reflect the roles and 
responsibilities of your staff.  We will not be able to match 100 percent of 
your jobs to the jobs contained in the salary surveys.  Non-benchmark jobs 
will be reviewed using a job "slotting" approach.

To help facilitate the matching process, I will be assembling handouts 
containing the job descriptions taken from the relevant salary surveys which 
I will send to each of you in advance of our Stage 2 meeting.  The intent 
here is to give you the opportunity to "pre-match" your respective jobs 
thereby minimizing the time required to achieve this objective during our 
Stage 2 meeting.  It will be critical that you are comfortable with the 
matches that you agree to as these matches will be used when gathering 
relevant market data.  The data will only be as good as the matches.

Following the conclusion of Stage 2, I can begin gathering the market data 
based on the results of the job matching exercise and prepare a comparative 
analysis that I will be presenting to Sally Beck.

I will be contacting each of you in the next few days to set up the Stage 1 
interviews.  I look forward to working with each of you and to the successful 
completion of this project.

Please call with any questions or comments.  I can be reached at X39437.  

Kind Regards,

Todd Burke
ENA Compensation