Enron Employee Committee Hires Legal Counsel to Investigate and Recover "Improper Bonuses" Paid on
The woes of Enron executives continue. Some received bonuses of over USD1 million just days before the state of the company was revealed to the world. The employees who have lost out want that money returned and shared out.
Enron's Employee Committee has appointed two law firms to investigate and recover bonuses paid to Enron executives within days before the collapse of the massive corporation, alleging that the payments by the company were improper.
The logic is difficult to argue against: the company was insolvent, and faking its balance sheet to secure investor confidence. On any reasonable interpretation of corporate behaviour, it is questionable for executives to vote themselves performance bonuses in respect of a company which is losing money.
In principle, the Bankruptcy Court of New York agrees and has approved a request by the Enron Employment-Related Issues Committee (Employee Committee) to hire the law firms
The Employee Committee is an official committee appointed by the United States Trustee charged with representing the collective interests of all current, former and retired Enron employees in Enron's bankruptcy case.
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