Message-ID: <19711582.1075861701540.JavaMail.evans@thyme>
Date: Tue, 6 Mar 2001 16:20:13 -0800 (PST)
From: laura.scott@enron.com
To: john.lavorato@enron.com
Subject: Lavorato
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
X-From: Scott, Laura </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=FB75746B-9A4183A5-862564CF-24AE78>
X-To: Lavorato, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jlavora>
X-cc: 
X-bcc: 
X-Folder: \JLAVORA (Non-Privileged)\Lavorato, John\PERSONAL
X-Origin: Lavorato-J
X-FileName: JLAVORA (Non-Privileged).pst

John, the Compensation + number is the approximate 30% gross-up you were getting on all your paycheques.

The Phantom stock taxable benefit is the tax on stock issued in 2000 that was unvested at year-end.  The value is calculated as:

Units issued				14,415 units
US share price on date issued		$55.50
Discount on stock price for volatility	33%
US share price after discount		37.00
F/X rate					1.4499
Cdn share price				$53.65
Value of taxable benefit			$773,350.08

John, you need to talk to your tax advisors regarding this stock.  When you leave a country you are deemed to dispose of assets at Fair Market Value.  I don't know what value would be put on this stock by both the Cdn and US taxation authorities as they had not vested at date of departure.
---------------------- Forwarded by Laura E Scott/CAL/ECT on 03/06/2001 05:07 PM ---------------------------


Patricia Henry
03/06/2001 09:05 AM
To:	Laura E Scott/CAL/ECT@ECT
cc:	 
Subject:	Lavorato

Laura, here is the breakdown for 2000 T4 items:

Regular pay		   133,212.50		box 14
Bonus			2,177,400.00		box 14
Incentive pay		1,955,917.39		box 14
Sign-on bonus		      31,943.40		box 14
Retention bonus	   288,560.00		box 14
Com/Ser allowance	       2,887.50		box 14
Compensaion+		  957,175.30		box 14
Vacation pay		     14,893.36		box 14
Phantom stock t.b.	  773,350.08		box 14 & box 38
Co match non-reg	       3,632.72		box 14 & box 40
Stock options t.b.	3,220,863.52		box 14 & box 38
AHC family t.b.		           340.00		box 14 & box 40
Parking t.b.		        1,498.00		box 14 & box 40
Life insur. t.b.		             330.00		box 14 & box 40
Dependent life t.b.	                 7.10		box 14 & box 40

	box 14 total	9,562,010.87

Stock optn ded		1,073,513.50		box 39
Pension 		       7,992.75		box 52
United way		       1,375.00		box 46

So as you can see, John did have taxable income of $9mm even though not all of it was actual cash in his pocket.  I think that boxes 38 and 40 through most people because they don't realize that those numbers are included in box 14.

If you need more info, please let me know.

Tricia