The Failure Of Enron

746 Words3 Pages
The main reason that contributing to the failure of Enron was greed. It has begun from the moment that Jeff Skilling has incorporated mark to market accounting into Company’s policies, and then the system was taken advantage of it. The bonuses that the executives was paid out to employees were based on speculations in futures that were never done or accomplished again like it used to be. The company spent several t years by trying to generate new revenue streams in order to make their company successful like they promised to be. However, some times the revenue stream was sustained through unethical. Greed and cutthroat attitudes were ingrained to the company’s corporate culture and the employees were manipulated the system in order to…show more content…
20000 employees has lost their job when Enron corporation wasbankrupt. The amount that was paid was $4500 while the top executives collected final bonuses totaling $55 Million.The study shows that in 2001 Enron employees has lost Billions dollards in retirement and pensions funds. Meanwhile the executives has sold more than $110 Million in stock like the company was under. Despite to make remorseful statement according to the employees of the company, the executives manifest throughout the life of the Enron which was no end to the corporate greed. While I was trying to visit the Enron website page , there was a link to an investor relations site where the former Enron shareholders are still engaged in a lawsuit with the former executives. some of these investors are former employees who are seeking some semblance of retribution for how they hab been treated and for being lied . Another reason of the outcome of the Enron company’s scandal for line level is that the employees were the dissolution of Arthur Andersen.” The Country’s oldest accounting firm voluntarily gave up their license in the wake of handling Enron’s accounting audit function.” Over 22,000 employees at Enron have lost their jobs and the reputation of the company was still tarnished,even though it was not involved with the Enron Audit or…show more content…
Both of them were escaped criminal charges and cashed in high amounts of company stock in the years leading up to the collapse. The article in Financial News “The Enron Cast: Where are they now?” Jeff Skilling former CEO and COO paid attorneys a $23 Million retainer to pledge his innoncent but he was guilty of the fraud. Now He is serving a 24 year prison that his lawyers are still fighting every day at the court and on every ground for appeal available to them. If he accept the 24 years in a proper federal penitentiary that can be sufficient recourse for his actions that he committed. Kenneth Lay was convicted of more than 5 counts of fraud and 2 cases of conspiracy; he faced up more than150 years in the prison but he died of a heart attack before even he could ever be processed. He died on a ski vacation in Colorado, and likely paid for with the money he has effective stolen from company investors. CFO Andrew Fastow has served for 5 years in exchange for cooperation with prosecutors and testimony against other company
Open Document