ENRON CASE WRITE UP

Case Facts

How Yvas Enron created?

Enron was created out of the merger of two major gas pipeline companies in $1985.$

$2.$ How was the corporate culture at Enron described?

The corporate culture at Enron was described as "arrogant." Their executives believed that competitors had no chance against them.

$3.$ In what way was Enron's collapse a failure of corporate governance?

$4.$ What is the "rank & yank" system?

Enron's employees were rated every six months, and those ranks in the bottom $20\%$ were forced out.

$5.$ How were debts covered up$?$

$6.$ How did the Vice President try to stop the cover up$?$ Was she successful?

$7.$ How did the actions of the CFO, CEO, Enron's lawyers contribute to Enron's demise?

$8.$ What criminal penalties were imposed on the CFO, the CEO, and Enron's lawyers?

The CFO, Andrew Fastow, agreed to serve up to $10$ years in prison once prosecutors no longer needed his cooperation. The CEO, Jeffrey Skilling, was sentenced to $24$ years in prison, which he has been serving in Colorado. And Enron's lawyers did not admit to liability, but agreed to pay $$30$ million to settle claims that Vinson & Elkins had contributed to the firm's collapse.

$9.$ What new legislation $($law$)$ was passed after the Enron sandal and what does it say?