Wouldn’t it be great to have your first “real” job out of college where you get to have a say in major company initiatives and along with a lot of say, you also get a huge six figure salary? That would be the life wouldn’t it?
Top executives at major corporations typically make six to seven figures after all is said and done, and many times even upper management makes the nice figure salaries but to know that someone who can not even read a budget breakdown has the ability to make over 100,000 dollars. Working at Enron will give you those six figure salaries even if you over the course of the year loose the company more then a few millions.
In 2002 Forbes magazine published an article that laid out top executive salaries for the last five years, http://www.forbes.com/2002/03/22/0322enronpay.html. Where as in the 1990’s other top executives were only making 2.7 million Enron executives, before other monetary benefits, were taking home a salary of almost 3.1 million.
Big salaries and even bigger financial loss seemed to be a trend at Enron, especially when it came time for them to unveil their newest endeavor. Enron seemed to enjoy giving out big paychecks in return their employees would continually invest in corporate ventures that would end in even bigger losses financial for the company.
Enron made millions off of their broadband “hype” they publicized that they had signed a 20 year, exclusive agreement with Blockbuster, the American people like their brand names, and when you include a corporation such as Blockbuster you are setting yourself up to make millions just like Enron had wanted to do, and how would they make that money none other than mark to market accounting.
Enron said that there was a need for broadband and could apply mark to market account to make projections, luckily for Blockbuster, the deal was called off in March 2001, surprisingly just 9 months later, Enron filed for bankruptcy and that is when it all began to fall apart.