Message-ID: <13969167.1075856789257.JavaMail.evans@thyme>
Date: Wed, 15 Dec 1999 10:05:00 -0800 (PST)
From: office.chairman@enron.com
To: all.presidents@enron.com
Subject: Performance Management Process
Mime-Version: 1.0
Content-Type: text/plain; charset=ANSI_X3.4-1968
Content-Transfer-Encoding: quoted-printable
X-From: Office of the Chairman
X-To: All Managing Directors and Vice Presidents
X-cc: 
X-bcc: 
X-Folder: \Vincent_Kaminski_Jun2001_6\Notes Folders\All documents
X-Origin: Kaminski-V
X-FileName: vkamins.nsf

As our existing businesses grow and new businesses are created, ease of=20
movement and development of our top talent becomes essential to our success=
. =20
As you heard at the Management Conference all officers will be titled,=20
reviewed, promoted, and compensated according to a more standard set of=20
guidelines.  The process recognizes the intrinsic value of each officer,=20
rather than tying that individual to the value of their specific job or=20
reporting relationship.

Officer titling has been standardized throughout Enron.  There are four=20
levels of officers: members of the Enron Office of the Chairman make up Lev=
el=20
4.  Level 3 includes all other members of the Enron Executive Committee. =
=20
Level 2 is made up of managing directors, including company presidents and=
=20
some senior vice presidents.  Level 1 are vice presidents and some senior=
=20
vice presidents with grandfathered titles.

This year a common evaluation process is being implemented for Level 1 and=
=20
Level 2 officers.  Officers will be evaluated by a committee, through a=20
process referred to as the Performance Review Committee (PRC), utilizing a=
=20
standard set of performance criteria and performance ratings.  Performance=
=20
committee reviews will occur twice a year =01) in July for feedback purpose=
s and=20
at year-end for feedback as well as bonus and total compensation=20
considerations.  The Executive Committee will handle the PRC for all Level =
2=20
officers. Review of Level 1 officers will occur at the business-unit level=
=20
first with the results =01&cross calibrated=018 by the Executive Committee =
and a=20
group of approximately sixteen managing directors.

The goals of the PRC process is to insure a consistent standard for our=20
overall pool of executive talent and to provide a tool to more effectively=
=20
utilize talent throughout the organization.  To further promote consistency=
=20
the Executive Committee will consider all promotions in January of each=20
year.  Exceptions, internally or externally, will be infrequent.

The individual=01,s performance evaluation will be the starting point for a=
ll=20
compensation decisions.  Compensation includes base pay, bonus and long-ter=
m=20
awards.  A long-term program that replaces individual or business unit plan=
s=20
has been approved and will be communicated to individuals before bonus=20
payments are made.

In addition to the Level 1 and Level 2 reviews, business unit, global and=
=20
corporate cross-functional PRC reviews for directors, senior directors and=
=20
general managers have started.  This year-end process will be utilized as a=
=20
benchmark to determine how we further refine the evaluation process at this=
=20
level in the future.

If you should have any questions about the process, please direct them to=
=20
your Human Resources Business Unit Leads per the following:

Mary Ann Long (GPG) x36810    David Oxley (ENA/EEL/Global Trading) X33557
Ray Bennett (EES) X37039    Robert Jones (Global Technology/Global=20
Finance/Global
Gwen Petteway (Corp) X37351      Asset Operations/Global Engineering &=20
Construction) X35810
Janie Bonnard (Caribbean/Middle East/   Scott Gilchrist (Asia=20
Pacific/Africa/China) X67081
  LNG) X68202      Gerry Chatham (EGEP) X35141
Miguel Padron (ESA) X66552    Marla Barnard (ECI) X58158
Ranen Sengupta (India) X67967  =20


cc: Enron Executive Committee Members  =20


28599



























