MANAGEMENT is efficiency in climbing the ladder of success; LEADERSHIP determines whether the ladder is leaning against the right wall - Stephen Covey

Tuesday, October 24, 2006

Jeff Skill(ing!)

Wondering why I titled my post that way??? Well, because all said & done, JS (former CEO of Enron Corpn) was a highly skilled man – more for the wrong reasons than right…after all, he received his B.S. in applied science at Southern Methodist University (1975), where he was a member of Beta Theta Pi and decided to get into HBS to pursue his MBA, where he was once asked by the interviewer "Are you smart?" – to which he famously replied, "I'm f****g smart"…now you really know how smart this guy could get…I really wonder why such a f****g smart guy would need an Ivy league MBA education!

Well, after graduating in the top 5% of his class from Harvard, he set sail to join McKinsey & Company as a consultant (not too sure how smart he was back then at McKinsey) in the energy & chemical consulting practice and then began working with Enron (well, I guess McKinsey & Company could have put its client’s interest first in this case!) way back in ’87, helping the company create a forward market (its basically a OTC financial market in energy contracts for future delivery) in natural gas. Kenneth Lay was obviously impressed and hired JS to become the Chairman & CEO of Enron in ’91 (I guess he was turning out to be a very creative CEO trying to create off-balance-sheet transactions!)

Well, the last few years have not been that good for Mr. Skilling – he was indicted on 35 counts of fraud, insider trading, and other crimes related to the collapse of Enron and pleaded not guilty to all charges. The main reason for his arrest was his probable knowledge of the fraudulent (creative!) transactions within Enron. It’s astonishing to note that Mr.Skilling spent close to $40 million in preparation for the trial, at least $23 million of which going to his defense lawyers' retainer…no wonder as the old adage goes “UK is made of accountants and USA is made of lawyers

On May 25, 2006 Mr. Skilling was found guilty on 19 counts of conspiracy, fraud, false statements and insider trading and yesterday, Mr. Skilling was sentenced to 24 years in prison and fined $45 million for his role in the collapse of Enron. He plans to appeal (skillfully, I suppose!). Good Luck with your skills Mr.Skilling!

5 Comments:

Blogger J.KANNAN said...

Mr. Jeff Skilling has already lost his skills and he is going to get killed inside the four walls of the prison and he deserves it for utterly misusing his high profile academics and for miserably having failed to retain his name, fame,image & reputation of having worked for a Company like Mc Kensey & Company B4 enroling into ENRON to make an END of ENRON.

I would never rate Jeff as a smart guy, rather he is the most foolish guy on the earth having made in millions and parted with hefty sums to his lawyer and towards fine/penalty and to live and die in prison.(Money earned should have meaning and purpose, otherwise it's not worth at all) 24 years is too long a period to be spent in prison and to make this happen he need not hv studied in world ranking academic institutes. By the time Mr.Jeff Skilling comes out of the prison(IF AT ALL) he should be called as JEFF KILLING.

For me it looks like he making a futile attempt by going in for an appeal.

May Jesus bless Jeff.

3:04 PM

 
Blogger Sriram said...

Well said JK. I agree with you.

3:06 PM

 
Blogger sales said...

Mr. Skilling needed some training in ethics at McKinsey or somewhere. He probably had that training but neglected to apply it. A lot of people lost their life savings in 401k's and stock in his company. I am really not sure how they sleep at night.

12:18 PM

 
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