In 1986, InterNorth changed its name to Enron. Kenneth Lay, the former chairman
of Houston Natural Gas, emerged as the top executive of the newly created firm that
chose Houston, Texas, as its corporate headquarters. Lay quickly adopted the aggressive
growth strategy that had long dominated the management policies of InterNorth
and its predecessor. Lay hired Jeffrey Skilling to serve as one of his top subordinates.
During the 1990s, Skilling developed and implemented a plan to transform Enron
from a conventional natural gas supplier into an energy-trading company that served
as an intermediary between producers of energy products, principally natural gas
and electricity, and end users of those commodities. In early 2001, Skilling assumed
Lay’s position as Enron’s chief executive offi cer (CEO), although Lay retained the
title of chairman of the board. In the management letter to shareholders included in
Enron’s 2000 annual report, Lay and Skilling explained the metamorphosis that Enron
had undergone over the previous 15 years:
In 1986, InterNorth changed its name to Enron. Kenneth Lay, the former chairmanof Houston Natural Gas, emerged as the top executive of the newly created firm thatchose Houston, Texas, as its corporate headquarters. Lay quickly adopted the aggressivegrowth strategy that had long dominated the management policies of InterNorthand its predecessor. Lay hired Jeffrey Skilling to serve as one of his top subordinates.During the 1990s, Skilling developed and implemented a plan to transform Enronfrom a conventional natural gas supplier into an energy-trading company that servedas an intermediary between producers of energy products, principally natural gasand electricity, and end users of those commodities. In early 2001, Skilling assumedLay’s position as Enron’s chief executive offi cer (CEO), although Lay retained thetitle of chairman of the board. In the management letter to shareholders included inEnron’s 2000 annual report, Lay and Skilling explained the metamorphosis that Enronhad undergone over the previous 15 years:
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