Kenneth Lay | |
|---|---|
 Mugshot of Lay upon his arrest in 2004 | |
| Born | Kenneth Lee Lay April 15, 1942 Tyrone, Missouri, U.S. |
| Died | July 5, 2006 (aged 64) Snowmass, Colorado, U.S. |
| Education | |
| Occupation | Businessman |
| Spouses |
|
| Children | 5 |
Kenneth Lee Lay (April 15, 1942 – July 5, 2006) was an American businessman who was the founder, chief executive officer and chairman of Enron. He was heavily involved in Enron's accounting scandal that unraveled in 2001 into the largest bankruptcy ever to that date. Lay was indicted by a grand jury[1] and was found guilty of 10 counts of securities fraud at trial.[2] Lay died in July 2006 while vacationing in his house near Aspen, Colorado, three months before his scheduled sentencing.[3] A preliminary autopsy reported Lay died of a heart attack caused by coronary artery disease. His death resulted in a vacated judgment.[4][5][6] Conspiracy theories regarding Lay's death surfaced, alleging that it was faked.[7]
Lay left behind "a legacy of shame" characterized by "mismanagement and dishonesty".[8] In 2009 a list posted on Portfolio.com ranked Lay as the third-worst American CEO of all time.[a][9] His actions were the catalyst for subsequent and fundamental corporate reform in regard to "standards of leadership, governance, and accountability".[8]
Lay was one of America's highest-paid CEOs; between 1998 and 2001, he collected more than $220 million in cash and stock in Enron, selling 1.7 million of those shares.[10] However, during his trial in 2006, Lay claimed that Enron stock made up about 90% of his wealth, and that his net worth at that time was negative $250,000.[11]
- ^ Crawford, Kristen (July 12, 2004). "Lay surrenders to authorities". CNN.
- ^ Pasha, Shaheen; Seid, Jessica (May 25, 2006). "Lay and Skilling's day of reckoning". CNN.
- ^ Mulligan, Thomas S.; Bustillo, Miguel (July 6, 2006). "Death Puts Lay Conviction in Doubt". Los Angeles Times.
- ^ Fowler, Tom (October 17, 2006). "Judge vacates conviction of Ken Lay". Associated Press.
- ^ United States v. Lay, Criminal Action No. H-04-0025, 456 F.Supp.2d 869 (S.D. Tex. 2006), at [1].
- ^ Bratton, William W. (May 2002). "Does Corporate Law Protect the Interests of Shareholders and Other Stakeholders?: Enron and the Dark Side of Shareholder Value". Tulane Law Review (PDF) (1275). New Orleans: Tulane University Law School: 61. SSRN 301475.
- ^ "Conspiracy theories surround Ken Lay's death". NBC. July 15, 2006.
- ^ a b Morrison, Mark (July 4, 2006). "Ken Lay's Dark, Ironic Legacy". Bloomberg News.
- ^ "Portfolio's Worst American CEOs of All Time". CNBC. April 30, 2009.
- ^ Multiple sources:
- Wayne, Leslie (January 13, 2002). "Enron's Collapse; Before Debacle, Enron Insiders Cashed In". The New York Times.
- Ackman, Dan (February 2, 2002). "Lay Lays an Egg". Forbes.
- Johnson, Carrie (June 10, 2006). "A Woman of Conviction". The Washington Post.
- Mulligan, Thomas S.; Riveral Brooks, Nancy (June 18, 2002). "Enron Paid Senior Execs Millions". Los Angeles Times.
- ^ Pasha, Shaheen (September 7, 2006). "U.S., Lay estate ink $12M pension settlement". CNN.
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