Kenneth Lay
Encyclopedia
Kenneth Lee "Ken" Lay (April 15, 1942 – July 5, 2006) was an American
businessman, best known for his role in the widely reported corruption scandal that led to the downfall of Enron Corporation
. Lay and Enron became synonymous with corporate abuse and accounting fraud
when the scandal broke in 2001. Lay was the CEO and chairman of Enron from 1985 until his resignation on January 23, 2002, except for a few months in 2000 when he was chairman and Jeffrey Skilling
was chief executive officer (CEO).
On July 7, 2004, Lay was indicted by a grand jury
on 11 counts of securities fraud and related charges. On January 31, 2006, following four and a half years of preparation by government prosecutors, Lay's and Skilling's trial
began in Houston
. Lay was found guilty on May 25, 2006, of 10 counts against him; the judge dismissed the 11th. Because each count carried a maximum 5- to 10-year sentence, legal experts said Lay could have faced 20 to 30 years in prison. However, he died while vacationing in Snowmass
, Colorado
on July 5, 2006, about three and a half months before his scheduled October 23 sentencing. Preliminary autopsy reports state that he died of a heart attack
caused by coronary artery disease. As a result of his death, on October 17, 2006, the federal district court judge who presided over the case vacated
Lay's conviction. There have been conspiracy theories surrounding his death.
, the son of Ruth (née Rees) and Omer Lay. His father was a Baptist preacher and some-time tractor salesman. When Lay was a child, he delivered newspapers and mowed lawns. Early on, he moved to Columbia, Missouri
and attended David H. Hickman High School and the University of Missouri
where he studied economics
, receiving a B.A.
in 1964 and an M.A.
in 1965. He served as president of the Zeta Phi
chapter of the Beta Theta Pi
fraternity at the University of Missouri. He went on to earn his Ph.D.
in economics from the University of Houston
in 1970 and soon after went to work at Exxon Mobil Corp., the successor to Humble Oil & Refining.
Lay worked in the early 1970s as a federal energy regulator
. He then became undersecretary for the Department of the Interior before he returned to the business world as an executive at Florida Gas Transmission
. By the time energy was deregulated in the 1980s, Lay was already an energy company executive and he took advantage of the new climate when Omaha-based Internorth bought his company Houston Natural Gas and changed the name to Enron in 1985. The much larger, better capitalized and more diversified Internorth was then used as an asset to propel his efforts at Enron. He also was a member of the board of directors of Eli Lilly and Company
.
Lay was one of America's highest-paid CEOs, earning a $42.4 million compensation package in 1999. In December 2000, Lay was mentioned as a possible candidate for President Bush's
Treasury secretary along with J.P. Morgan & Co.
head Douglas A. Warner III
and a few others. Lay dumped large amounts of his Enron stock
in September and October 2001 as its price fell, while encouraging employees to buy more stock, telling them the company would rebound. Lay liquidate
d more than $300 million in Enron stock from 1998 to 2001, mostly in stock options. As the scandal unfolded, Lay insisted he wanted to "tell his story," but later reneged on a promise to testify to Congress, taking the Fifth
instead. Condé Nast Portfolio
ranked Lay as the 3rd worst American CEO of all time.
Lay had been married to his second wife and former secretary, Linda, for 22 years and had two children, three stepchildren, and twelve grandchildren.
in Houston
, Texas
, for his role in Enron's collapse. Lay was charged, in a 65-page indictment, with 11 counts of securities fraud
, wire fraud
, and making false and misleading statements. The trial commenced on January 30, 2006, in Houston, despite repeated protests from defense attorneys calling for a change of venue on the grounds that "it was impossible to get a fair trial in Houston" — the epicenter of Enron's collapse. Enron's bankruptcy
, the biggest in U.S. history when it was filed in December 2001, cost 20,000 employees their jobs and many of them their life savings. Investors lost billions of dollars. Before Lay was put on trial he was estimated to have a gross wealth of approx. 40 million US dollars. It is believed that most of it was spent on legal defense. During his trial, Lay claimed that in 2001 Enron stock made up about 90 percent of his wealth, and that his current net worth (in 2006) was in the negative by $250,000. He insisted that Enron's collapse was due to a conspiracy waged by short sellers, rogue executives, and the news media. It was reported that Lay's congenial reputation took a blow as he appeared confrontational and irritable at several points during his testimony. On May 25, 2006, Lay was found guilty on all six counts of conspiracy and fraud by a jury of eight women and four men. In a separate bench trial, Judge Lake ruled Lay was guilty of four counts of fraud and false statements. Sentencing was scheduled to take place on 11 September 2006, but was later rescheduled for 23 October 2006.
A number of books have been written on Lay and Enron including Conspiracy of Fools
(2005), Icarus in the Boardroom, The Tao of Enron: Spiritual Lessons from a Fortune 500 Fallout (2002), Enron: Anatomy of Greed (2001), The Smartest Guys in the Room
(2003), 24 Days, and Power Failure. The Smartest Guys in the Room was adapted into a documentary film
titled Enron: The Smartest Guys in the Room
, released in 2005.
. The Pitkin
Sheriff's Department confirmed that officers were called to Lay's house in Old Snowmass, Colorado
, near Aspen
at 1:41 AM MDT
. Lay was taken to Aspen Valley Hospital, where he was pronounced dead at 3:11 AM MDT. Autopsies indicated that he died of a heart attack
brought on by coronary artery disease, and found evidence that he had suffered a previous heart attack.
A private funeral
with around 200 in attendance was held in Aspen four days after his death, his body cremated and the ashes buried in a secret location in the mountains. A memorial was held a week after his death at the First United Methodist Church
in Houston, attended by nearly 1,200 guests including former President George H. W. Bush
, who did not speak.
. Precedent in the Fifth Circuit Court of Appeals, the federal appellate court governing the district where Lay was indicted, indicates that abatement had to be automatically granted. When abatement occurs, the law views it as though he had never been indicted, tried and convicted. The government opposed Lay's attorneys' motion for abatement, and the Department of Justice issued a statement that it "remains committed to pursuing all available legal remedies and to reclaim for victims the proceeds of crimes committed by Ken Lay." Civil suits are expected to continue against Lay's estate. However, according to legal expert Joel Androphy, claimants may not seek punitive damages against a deceased defendant, only compensatory damages.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman, best known for his role in the widely reported corruption scandal that led to the downfall of Enron Corporation
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
. Lay and Enron became synonymous with corporate abuse and accounting fraud
Accounting scandals
Accounting scandals, or corporate accounting scandals, are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations...
when the scandal broke in 2001. Lay was the CEO and chairman of Enron from 1985 until his resignation on January 23, 2002, except for a few months in 2000 when he was chairman and Jeffrey Skilling
Jeffrey Skilling
Jeffrey Keith "Jeff" Skilling is the former president of Enron Corporation, headquartered in Houston, Texas. In 2006 he was convicted of multiple federal felony charges relating to Enron's financial collapse, and is currently serving a 24-year, four-month prison sentence at the Federal...
was chief executive officer (CEO).
On July 7, 2004, Lay was indicted by a grand jury
Grand jury
A grand jury is a type of jury that determines whether a criminal indictment will issue. Currently, only the United States retains grand juries, although some other common law jurisdictions formerly employed them, and most other jurisdictions employ some other type of preliminary hearing...
on 11 counts of securities fraud and related charges. On January 31, 2006, following four and a half years of preparation by government prosecutors, Lay's and Skilling's trial
Trial of Kenneth Lay and Jeffrey Skilling
The trial of Kenneth Lay, former chairman and CEO of Enron,and Jeffrey Skilling, former CEO and COO, was presided over by federal district court Judge Sim Lake in 2006 in response to the Enron scandal.-Timeline:* The trial began January 30, 2006....
began in Houston
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
. Lay was found guilty on May 25, 2006, of 10 counts against him; the judge dismissed the 11th. Because each count carried a maximum 5- to 10-year sentence, legal experts said Lay could have faced 20 to 30 years in prison. However, he died while vacationing in Snowmass
Snowmass, Colorado
Snowmass is an unincorporated town and a U.S. Post Office located in Pitkin County, Colorado, United States. It is situated in the valley of the Roaring Fork River, near the mouth of Snowmass Creek along State Highway 82 between Aspen and Basalt...
, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
on July 5, 2006, about three and a half months before his scheduled October 23 sentencing. Preliminary autopsy reports state that he died of a heart attack
Myocardial infarction
Myocardial infarction or acute myocardial infarction , commonly known as a heart attack, results from the interruption of blood supply to a part of the heart, causing heart cells to die...
caused by coronary artery disease. As a result of his death, on October 17, 2006, the federal district court judge who presided over the case vacated
Vacated judgment
A vacated judgment makes a previous legal judgment legally void. A vacated judgment is usually the result of the judgment of an appellate court which overturns, reverses, or sets aside the judgment of a lower court....
Lay's conviction. There have been conspiracy theories surrounding his death.
Early life and career
Lay was born in Tyrone, MissouriMissouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
, the son of Ruth (née Rees) and Omer Lay. His father was a Baptist preacher and some-time tractor salesman. When Lay was a child, he delivered newspapers and mowed lawns. Early on, he moved to Columbia, Missouri
Columbia, Missouri
Columbia is the fifth-largest city in Missouri, and the largest city in Mid-Missouri. With a population of 108,500 as of the 2010 Census, it is the principal municipality of the Columbia Metropolitan Area, a region of 164,283 residents. The city serves as the county seat of Boone County and as the...
and attended David H. Hickman High School and the University of Missouri
University of Missouri
The University of Missouri System is a state university system providing centralized administration for four universities, a health care system, an extension program, five research and technology parks, and a publishing press. More than 64,000 students are currently enrolled at its four campuses...
where he studied economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, receiving a B.A.
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
in 1964 and an M.A.
Master of Arts (postgraduate)
A Master of Arts from the Latin Magister Artium, is a type of Master's degree awarded by universities in many countries. The M.A. is usually contrasted with the M.S. or M.Sc. degrees...
in 1965. He served as president of the Zeta Phi
Zeta Phi
The Zeta Phi Society was a fraternal organization founded at the University of Missouri in Columbia, Missouri in 1870. The society became a chapter of Beta Theta Pi in 1890...
chapter of the Beta Theta Pi
Beta Theta Pi
Beta Theta Pi , often just called Beta, is a social collegiate fraternity that was founded in 1839 at Miami University in Oxford, Ohio, USA, where it is part of the Miami Triad which includes Phi Delta Theta and Sigma Chi. It has over 138 active chapters and colonies in the United States and Canada...
fraternity at the University of Missouri. He went on to earn his Ph.D.
Doctor of Philosophy
Doctor of Philosophy, abbreviated as Ph.D., PhD, D.Phil., or DPhil , in English-speaking countries, is a postgraduate academic degree awarded by universities...
in economics from the University of Houston
University of Houston
The University of Houston is a state research university, and is the flagship institution of the University of Houston System. Founded in 1927, it is Texas's third-largest university with nearly 40,000 students. Its campus spans 667 acres in southeast Houston, and was known as University of...
in 1970 and soon after went to work at Exxon Mobil Corp., the successor to Humble Oil & Refining.
Lay worked in the early 1970s as a federal energy regulator
Regulatory Affairs
Regulatory affairs , also called government affairs, is a profession within regulated industries, such as pharmaceuticals, medical devices, energy, and banking...
. He then became undersecretary for the Department of the Interior before he returned to the business world as an executive at Florida Gas Transmission
Florida Gas Transmission
Florida Gas Transmission is a natural gas pipeline which brings gas from Texas, Louisiana, Mississippi, and Alabama into Florida. It is owned 50% by Southern Union Company and 50% by El Paso Corporation's Southern Natural Gas unit. Its FERC code is 34....
. By the time energy was deregulated in the 1980s, Lay was already an energy company executive and he took advantage of the new climate when Omaha-based Internorth bought his company Houston Natural Gas and changed the name to Enron in 1985. The much larger, better capitalized and more diversified Internorth was then used as an asset to propel his efforts at Enron. He also was a member of the board of directors of Eli Lilly and Company
Eli Lilly and Company
Eli Lilly and Company is a global pharmaceutical company. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States...
.
Lay was one of America's highest-paid CEOs, earning a $42.4 million compensation package in 1999. In December 2000, Lay was mentioned as a possible candidate for President Bush's
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
Treasury secretary along with J.P. Morgan & Co.
J.P. Morgan & Co.
J.P. Morgan & Co. was a commercial and investment banking institution based in the United States founded by J. Pierpont Morgan and commonly known as the House of Morgan or simply Morgan. Today, J.P...
head Douglas A. Warner III
Douglas A. Warner III
Douglas 'Sandy' Warner is an American banker who joined Morgan Guaranty Trust Company of New York out of college in 1968 as an officer's assistant and rose through the ranks to become chairman of the board of J.P. Morgan & Co. Inc. in 2000...
and a few others. Lay dumped large amounts of his Enron stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
in September and October 2001 as its price fell, while encouraging employees to buy more stock, telling them the company would rebound. Lay liquidate
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
d more than $300 million in Enron stock from 1998 to 2001, mostly in stock options. As the scandal unfolded, Lay insisted he wanted to "tell his story," but later reneged on a promise to testify to Congress, taking the Fifth
Taking the Fifth
The Self-Incrimination Clause of the Fifth Amendment to the United States Constitution provides that "no person . . . shall be compelled in any criminal case to be a witness against himself."...
instead. Condé Nast Portfolio
Condé Nast Portfolio
Portfolio.com is a website published by American City Business Journals that provides news and information for small to mid-sized businesses. It was formerly the website for the monthly business magazine Condé Nast Portfolio, published by Condé Nast from 2007 to 2009.Portfolio.com is continually...
ranked Lay as the 3rd worst American CEO of all time.
Lay had been married to his second wife and former secretary, Linda, for 22 years and had two children, three stepchildren, and twelve grandchildren.
Indictment and trial
On July 7, 2004, Lay was indicted by a grand juryGrand jury
A grand jury is a type of jury that determines whether a criminal indictment will issue. Currently, only the United States retains grand juries, although some other common law jurisdictions formerly employed them, and most other jurisdictions employ some other type of preliminary hearing...
in Houston
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, for his role in Enron's collapse. Lay was charged, in a 65-page indictment, with 11 counts of securities fraud
Securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws....
, wire fraud
Wire fraud
Mail and wire fraud is a federal crime in the United States. Together, 18 U.S.C. §§ 1341, 1343, and 1346 reach any fraudulent scheme or artifice to intentionally deprive another of property or honest services with a nexus to mail or wire communication....
, and making false and misleading statements. The trial commenced on January 30, 2006, in Houston, despite repeated protests from defense attorneys calling for a change of venue on the grounds that "it was impossible to get a fair trial in Houston" — the epicenter of Enron's collapse. Enron's bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
, the biggest in U.S. history when it was filed in December 2001, cost 20,000 employees their jobs and many of them their life savings. Investors lost billions of dollars. Before Lay was put on trial he was estimated to have a gross wealth of approx. 40 million US dollars. It is believed that most of it was spent on legal defense. During his trial, Lay claimed that in 2001 Enron stock made up about 90 percent of his wealth, and that his current net worth (in 2006) was in the negative by $250,000. He insisted that Enron's collapse was due to a conspiracy waged by short sellers, rogue executives, and the news media. It was reported that Lay's congenial reputation took a blow as he appeared confrontational and irritable at several points during his testimony. On May 25, 2006, Lay was found guilty on all six counts of conspiracy and fraud by a jury of eight women and four men. In a separate bench trial, Judge Lake ruled Lay was guilty of four counts of fraud and false statements. Sentencing was scheduled to take place on 11 September 2006, but was later rescheduled for 23 October 2006.
A number of books have been written on Lay and Enron including Conspiracy of Fools
Conspiracy of Fools
Conspiracy of Fools is a book by Kurt Eichenwald detailing the Enron scandal. It was published in 2005 when Eichenwald was a business journalist with The New York Times.- Synopsis :...
(2005), Icarus in the Boardroom, The Tao of Enron: Spiritual Lessons from a Fortune 500 Fallout (2002), Enron: Anatomy of Greed (2001), The Smartest Guys in the Room
The Smartest Guys in the Room (book)
The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron is a book by Bethany McLean and Peter Elkind, first published in 2004 by Portfolio Trade....
(2003), 24 Days, and Power Failure. The Smartest Guys in the Room was adapted into a documentary film
Documentary film
Documentary films constitute a broad category of nonfictional motion pictures intended to document some aspect of reality, primarily for the purposes of instruction or maintaining a historical record...
titled Enron: The Smartest Guys in the Room
Enron: The Smartest Guys in the Room
Enron: The Smartest Guys in the Room is a 2005 documentary film based on the best-selling 2003 book of the same name by Fortune reporters Bethany McLean and Peter Elkind, a study of one of the largest business scandals in American history...
, released in 2005.
Death
Lay died on July 5, 2006, while vacationing in ColoradoColorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
. The Pitkin
Pitkin, Colorado
Pitkin is a Statutory Town in Gunnison County, Colorado, United States. The population was 66 at the 2010 census.-Geography:Pitkin is located at ....
Sheriff's Department confirmed that officers were called to Lay's house in Old Snowmass, Colorado
Snowmass, Colorado
Snowmass is an unincorporated town and a U.S. Post Office located in Pitkin County, Colorado, United States. It is situated in the valley of the Roaring Fork River, near the mouth of Snowmass Creek along State Highway 82 between Aspen and Basalt...
, near Aspen
Aspen, Colorado
The City of Aspen is a Home Rule Municipality that is the county seat and the most populous city of Pitkin County, Colorado, United States. The United States Census Bureau estimates that the city population was 5,804 in 2005...
at 1:41 AM MDT
Mountain Time Zone
The Mountain Time Zone of North America keeps time by subtracting seven hours from Coordinated Universal Time, also known as Greenwich Mean Time, during the shortest days of autumn and winter , and by subtracting six hours during daylight saving time in the spring, summer, and early autumn...
. Lay was taken to Aspen Valley Hospital, where he was pronounced dead at 3:11 AM MDT. Autopsies indicated that he died of a heart attack
Myocardial infarction
Myocardial infarction or acute myocardial infarction , commonly known as a heart attack, results from the interruption of blood supply to a part of the heart, causing heart cells to die...
brought on by coronary artery disease, and found evidence that he had suffered a previous heart attack.
A private funeral
Funeral
A funeral is a ceremony for celebrating, sanctifying, or remembering the life of a person who has died. Funerary customs comprise the complex of beliefs and practices used by a culture to remember the dead, from interment itself, to various monuments, prayers, and rituals undertaken in their honor...
with around 200 in attendance was held in Aspen four days after his death, his body cremated and the ashes buried in a secret location in the mountains. A memorial was held a week after his death at the First United Methodist Church
First United Methodist Church
First United Methodist Church is a common name for the first United Methodist church established in a particular locality. Many First United Methodist Churches exist around the world....
in Houston, attended by nearly 1,200 guests including former President George H. W. Bush
George H. W. Bush
George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...
, who did not speak.
Abatement of conviction
On October 17, 2006, since Lay died prior to exhausting his appeals, his conviction was abatedAbatement in pleading
Historically, Abatement in pleading, or plea in abatement was, in English law, a plea by the defendant, defeating or quashing a legal action by some matter of fact, such as a defect in form or the personal incompetency of the parties suing....
. Precedent in the Fifth Circuit Court of Appeals, the federal appellate court governing the district where Lay was indicted, indicates that abatement had to be automatically granted. When abatement occurs, the law views it as though he had never been indicted, tried and convicted. The government opposed Lay's attorneys' motion for abatement, and the Department of Justice issued a statement that it "remains committed to pursuing all available legal remedies and to reclaim for victims the proceeds of crimes committed by Ken Lay." Civil suits are expected to continue against Lay's estate. However, according to legal expert Joel Androphy, claimants may not seek punitive damages against a deceased defendant, only compensatory damages.
Conspiracy theories about death
Lay's death has given rise to various conspiracy theories claiming he is still alive. Suspicions include the timing of his death (while awaiting sentencing in a case several colleagues had already been convicted for), the fact that he was on vacation in a rural and unpopulated part of Colorado, the cremation of his body after death, and his close relationship with the Bush family. His autopsy report also contains an error concerning his date of death; in one instance July 5, which was a Wednesday, is listed as "Tuesday."Timeline of events
- 1965: Economist, Exxon Corporation
- 1969: Assistant professor, George Washington UniversityGeorge Washington UniversityThe George Washington University is a private, coeducational comprehensive university located in Washington, D.C. in the United States...
- 1970: Awarded PhD Economics, University of HoustonUniversity of HoustonThe University of Houston is a state research university, and is the flagship institution of the University of Houston System. Founded in 1927, it is Texas's third-largest university with nearly 40,000 students. Its campus spans 667 acres in southeast Houston, and was known as University of...
- 1971: Assistant to a commissioner, Federal Power CommissionFederal Power CommissionThe Federal Power Commission was an independent commission of the United States government, originally organized on June 23, 1930, with five members nominated by the president and confirmed by the Senate...
- 1972: Undersecretary for energy issues, Department of the InteriorUnited States Department of the InteriorThe United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
- 1974: Vice president, Florida Gas TransmissionFlorida Gas TransmissionFlorida Gas Transmission is a natural gas pipeline which brings gas from Texas, Louisiana, Mississippi, and Alabama into Florida. It is owned 50% by Southern Union Company and 50% by El Paso Corporation's Southern Natural Gas unit. Its FERC code is 34....
- 1976: President, Florida Gas Transmission
- 1979: Executive vice president, McDonald'sMcDonald'sMcDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...
- 1981: President, chief operating officerChief operating officerA Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
, TranscoNational Grid plcNational Grid plc is a multinational electricity and gas utility company headquartered in London, United Kingdom. Its principal activities are in the United Kingdom and northeastern United States and it is one of the largest investor-owned energy companies in the world.National Grid is listed on... - 1984: Chief executive officerChief executive officerA chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
, Houston Natural GasHouston Natural GasHouston Natural Gas Company was a gas utility headquartered in Houston, Texas. The company was acquired by InterNorth Inc. in 1985, with HNG executives taking top positions at InterNorth. Following the transaction, InterNorth was renamed Enron Corporation, and the company headquarters was moved... - 1985: EnronEnronEnron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
formed by purchase of Houston Natural Gas by InterNorthInterNorthInterNorth Inc. was a very large energy company headquartered in Omaha, Nebraska, in the United States, specializing in natural gas pipelines but also a force in the plastics industry, coal and petroleum exploration and production. They operated the largest natural gas pipeline in North America... - 1990: Chairman of the Board and chief executive officer, Enron; Co-chairman, organizing committee for G8G8The Group of Eight is a forum, created by France in 1975, for the governments of seven major economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. In 1997, the group added Russia, thus becoming the G8...
summit - 1992: Co-chairman, President Bush Re-election Committee; Chairman, 1992 Republican National Convention, Houston
- 1993: Member, President Clinton's 'President's Council on Sustainable Development'
- 1994: Assists with campaign of Sheila Jackson-Lee to defeat Congressman Craig Washington
- February 2001: Steps aside as CEO in favor of Jeffrey SkillingJeffrey SkillingJeffrey Keith "Jeff" Skilling is the former president of Enron Corporation, headquartered in Houston, Texas. In 2006 he was convicted of multiple federal felony charges relating to Enron's financial collapse, and is currently serving a 24-year, four-month prison sentence at the Federal...
- August 2001: Returns as CEO after Skilling's departure
- January 2002: Under extreme pressure, Lay resigns as Enron CEO, leaves Board
- July 2004: Indicted by grand jury
- May 2006: Found guilty on ten counts of fraud and conspiracy
- July 2006: Died at age 64, near Aspen, ColoradoAspen, ColoradoThe City of Aspen is a Home Rule Municipality that is the county seat and the most populous city of Pitkin County, Colorado, United States. The United States Census Bureau estimates that the city population was 5,804 in 2005...
, while on vacation - October 2006: A federal Judge vacates conviction
Awards and honors
- Anti-Defamation LeagueAnti-Defamation LeagueThe Anti-Defamation League is an international non-governmental organization based in the United States. Describing itself as "the nation's premier civil rights/human relations agency", the ADL states that it "fights anti-Semitism and all forms of bigotry, defends democratic ideals and protects...
—Torch of Liberty Award - Beta Theta PiBeta Theta PiBeta Theta Pi , often just called Beta, is a social collegiate fraternity that was founded in 1839 at Miami University in Oxford, Ohio, USA, where it is part of the Miami Triad which includes Phi Delta Theta and Sigma Chi. It has over 138 active chapters and colonies in the United States and Canada...
(National Fraternity)—Oxford Cup - Brunel UniversityBrunel UniversityBrunel University is a public research university located in Uxbridge, London, United Kingdom. The university is named after the Victorian engineer Isambard Kingdom Brunel....
(London)—Honorary Doctor of Social Sciences - Child Advocates—Super Hero Honoree Award
- Episcopal High School—Campaign Fundraiser Award
- Gas Daily—Man of the Year Award
- Horatio Alger Association of Distinguished AmericansHoratio Alger Association of Distinguished AmericansThe Horatio Alger Association of Distinguished Americans is a nonprofit organization based in Alexandria, Virginia, that was founded in 1947 to honor the achievements of outstanding Americans who have succeeded in spite of adversity and to emphasize the importance of higher education...
—Annual Membership Award - Houston Area Women’s Center—Honoree
- Houston Children’s Chorus—Honoree
- Houston Community Partners—Father of The Year
- Kenneth Lay Day—Proclaimed by Kathryn J. Whitmire, Mayor of Houston, Texas
- Kiwanis Club of Houston and the Greater Houston Partnership—International Executive of the Year
- March of DimesMarch of DimesThe March of Dimes Foundation is a United States nonprofit organization that works to improve the health of mothers and babies.-Organization:...
—Award of Distinction - NAACP Freedom Fund Banquet—Mickey Leland Humanitarian Award
- National Conference of Christians and Jews—Brotherhood Award
- Oswego State University—Honorary Doctor of Humane Letters Degree
- Phi Beta Kappa—Outstanding Alumnus Award
- Private Sector Council—Annual Leadership Award
- Stanford Business School Alumni Associations—Houston Business Man of the Year
- Texans For Lawsuit Reform—Award
- Texas Association of Minority Business Enterprises—Texas Corporate Partnering Award
- Texas Business Hall of Fame—Inductee
- Texas Navy Admiral—Commissioned by William P. Clements, Jr., Governor of Texas
- Texas Society To Prevent Blindness—Man of Vision Award
- The Brookwood Community—Honoree Award
- The Rotary Club of Houston—Distinguished Citizen Award
- The Wall Street Transcript—Chief Executive Officer Award
- United States Energy Association—United States Energy Award
- United States NavyUnited States NavyThe United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...
—Navy Commendation Medal & National Defense Service Medal - University of ColoradoUniversity of Colorado at BoulderThe University of Colorado Boulder is a public research university located in Boulder, Colorado...
, College of Business and Administration—Ben K. Miller Memorial, International Business Award - University of HoustonUniversity of HoustonThe University of Houston is a state research university, and is the flagship institution of the University of Houston System. Founded in 1927, it is Texas's third-largest university with nearly 40,000 students. Its campus spans 667 acres in southeast Houston, and was known as University of...
—Distinguished Alumnus Award - University of Houston—Honorary Doctor of Humane Letters Degree
- University of MissouriUniversity of MissouriThe University of Missouri System is a state university system providing centralized administration for four universities, a health care system, an extension program, five research and technology parks, and a publishing press. More than 64,000 students are currently enrolled at its four campuses...
—Honorary Doctor of Law Degree; The Hebert J. Davenport Society Benefactor Award - Volunteer Houston—Honoree Award
- The YMCAYMCAThe Young Men's Christian Association is a worldwide organization of more than 45 million members from 125 national federations affiliated through the World Alliance of YMCAs...
in Cinco RanchCinco Ranch, TexasCinco Ranch is a census-designated place and master-planned community located in the extraterritorial jurisdiction of Houston within Fort Bend and Harris Counties in the U.S. state of Texas. The population was 11,196 at the 2000 census. It lies about 25 miles west of the Harris County seat of...
in unincorporated Harris CountyHarris County, TexasAs of the 2010 Census, the population of the county was 4,092,459, White Americans made up 56.6% of Harris County's population; non-Hispanic whites represented 33.0% of the population. Black Americans made up 18.9% of the population. Native Americans made up 0.7% of Harris County's population...
, TexasTexasTexas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
was named after Ken Lay. Following the collapse of Enron, his name outside the building was made 70% smaller. Ultimately, the YMCA was renamed the "Katy Family YMCA" after the city of KatyKaty, TexasKaty is a city located in Harris, Fort Bend and Waller Counties in the U.S. state of Texas, within the Houston–Sugar Land–Baytown metropolitan area...
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Works
Articles by Ken Lay:- Megatrends Of Energy - World Energy Magazine Vol. 1 No. 1
- Electricity Restructuring Update - Increasing Efficiencies and Customer Choice are Integral to the Market Transition - World Energy Magazine Vol. 1 No. 2
External links
- Ken Lay profile at NNDB
- US v. Skilling and Lay, indictment document (2.3MB PDF).
- Autopsy of Enron's Lay shows severe artery blockage
- Film documentary: The Smartest Guys in the Room
- Calling Inquiries a Distraction, Enron Chief Quits Under Pressure, The New York Times, January 24, 2002
- Ken Lay's political donations
- Alternative History: Treasury Secretary Ken Lay
- CNN Money: Jury selected in Lay's trial
- Ken Lay's Political Campaign Contributions
- Some charges dropped, Enron prosecution rests
- MSNBC: Lay, Skilling guilty in Enron Scandal
- Enron's Founder Kenneth Lay, 64, Dies in Colorado
- No Redemption Now: Thoughts on the Death of Ken Lay, JURISTJURISTJURIST is an online legal news service hosted by the University of Pittsburgh School of Law, powered by a staff of more than 40 law students working in Pittsburgh and other US locations under the direction of founding Publisher & Editor-in-Chief Professor Bernard Hibbitts, Research Director Jaclyn...
- The Times, Obituary
- Mises Economics Blog, Is Ken Lay A Criminal? By William Anderson
- The Ken Lay Conspiracy