Subject: enronoptions - your stock option program
it is amazing and yet not surprising how much enron has accomplished in the
first six months of this year . you continue to make it happen . we recognize
that you work hard every day to accomplish enron  , s business goals , and we are
pleased that many of you have shared in the company  , s financial success
through enron stock options .
as you may know , the current employee stock option program ( also known as the
all employee stock option program or aesop ) began in 1994 and provided value
to participants through 2000 . employees who have participated in this
program from its inception have realized a 1 , 119 % increase in the value of
their stock options ( assuming a stock price of $ 70 ) over the life of the
program .
enron stock options are a valuable part of your total compensation package
and a contributing factor to your performance and to enron  , s continued
success . therefore , the enron executive committee and the compensation and
management development committee of the enron board of directors have decided
to continue to offer stock options as a part of your compensation package .
on may 1 , 2000 , the committee approved an employee stock option program for
calendar years 2001 - 2005 ( enronoptions  ) your stock option program ) . it is
expected that enronoptions  ) your stock option program will be granted ,
effective on or about december 29 , 2000 , for those employees who are eligible
on that date ( please see note below ) . the new program , which is subject to
final approval by enron  , s board of directors , is as follows :
? enronoptions  ) your stock option program will give stock options to
eligible full - time and part - time regular employees in domestic and
international companies / locations .
? the grant of non - qualified stock options will equal 25 % of annual base
salary ( 5 % of annual base salary for each year of a 5 - year period ) on
december 29 , 2000 . ( salary calculation and value may vary in some
international locations . )
? the board will grant the stock options on december 29 , 2000 .
? eligible employees hired in subsequent years will receive a prorated grant
of stock options .
why commit your talent and energy to enron ? enronoptions  ) your stock option
program , among other good reasons  ( that  , s why .
in the coming weeks , you will be receiving more details about enronoptions  )
your stock option program . to provide information and answer your questions ,
we will introduce a special link on the human resources web - site , host
several espeak sessions and continue to communicate with you on a regular
basis . in the meantime , if you have immediate questions , please contact your
human resources representative .
note : in addition to final approval by enron  , s board of directors , granting
of options will be subject to new york stock exchange and state and federal
regulatory requirements . it is expected that enronoptions  ) your stock
option program will be available to most enron employees ; however , some enron
companies  , employees may not be eligible due to legal , accounting , tax , labor
or business issues . as you know , enron changes to meet the needs of the
marketplaces we serve . given that need to change , we will continue to refine
the eligibility for enronoptions  ) your stock option program and will
communicate more details throughout the year with final eligibility being
determined on december 29 , 2000 .