Message-ID: <10738503.1075846385013.JavaMail.evans@thyme>
Date: Wed, 18 Oct 2000 05:22:00 -0700 (PDT)
From: steven.kean@enron.com
To: elizabeth.linnell@enron.com
Subject: Re: meeting with Mark Lindsay
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X-From: Steven J Kean
X-To: Elizabeth Linnell
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Thanks for the update.  I want to make sure we present the numbers in a mor=
e=20
coherent fashion than just laying out the individual RCs.  You and I have=
=20
discussed this before; my recollection is that we were going to break out a=
s=20
follows:

Administrative services
Aviation
building services
new building
ongoing
government affairs
Americas
Europe-Asia
Other budgets retained at business unit level
(explanation of shift in expenses from advocacy to transaction support/risk=
=20
management
PR/Communications
Brand advertising
internal comm
other PR

I may be forgetting some of the subgroups we talked about, but this is the=
=20
general idea.



=09Elizabeth Linnell
=09Sent by: Elizabeth Linnell
=0910/18/2000 11:00 AM
=09=09=20
=09=09 To: Steven J Kean/NA/Enron@Enron
=09=09 cc:=20
=09=09 Subject: meeting with Mark Lindsay

I wanted to update you on my conversation this morning with Mark Lindsay=20
regarding next week=01,s budget meeting.

The format will be similar to last year=01,s.  We=01,ll be receiving from M=
ark=01,s=20
group a consolidated spreadsheet of all of our budgets, grouping them by=20
functionality and illustrating 2000 plan, 2000 estimate, and 2001 plan, and=
=20
the variances between.  We will be covering the EPSC and Aviation budgets=
=20
during the same meeting.  Billie and I will get together on Friday to compa=
re=20
what the two of us have so far, and then we have a meeting set up for Monda=
y=20
morning with you, Bill, Billie and me to go over everything in advance of=
=20
Tuesday=01,s meeting.

Points that Mark made (no surprises here):
-  Jeff has mentioned that he wants to see reductions in all corporate cost=
=20
centers since our international activities look like they=01,re going away.=
  (We=20
have made significant reductions year to year on our international gov=01,t=
=20
affairs and PR budgets, and I think we can justify that the other cost=20
centers are primarily focused on domestic activities while the individual=
=20
business units budget much of those activities themselves.)
-  Even though we=01,re allocating more overall to the business units this =
year,=20
Jeff will be interested in the gross budget numbers, before any allocations=
.
-  We need to be able to explain any significant budget changes year to yea=
r
 -  Mark particularly emphasized the increase in the PR budget, most of whi=
ch=20
is retained at Corp anyway
 -  We need to be able to explain anything that we=01,ve inherited from the=
=20
business units that is now staying at Corp.  This  applies to the headcount=
=20
that we=01,ve picked up from ENA and from Int=01,l (Dennis=01, group). =20

Lindsay mentioned that there=01,s a possibility that Causey may, in advance=
 of=20
our Tuesday meeting, meet by himself with Skilling to get a general idea of=
=20
where Jeff stands on the corporate budgets as they=01,ve been submitted so =
far,=20
and then come back to us with instructions on any changes that need to be=
=20
made.  If this is the case, we may have to make cuts before we get to prese=
nt=20
our case.

I'm working on our presentation based on that conversation and will forward=
=20
it to you as it progresses.