Enron Promotes 2 Execs to Office of Chairman

HOUSTON — Enron Corp., the largest energy trader, on Tuesday promoted Greg Whalley and Mark Frevert to the office of the chairman, making them the top candidates for the chief executive’s job Jeffrey Skilling left two weeks ago.

Whalley, 39, was named president and chief operating officer. He had held those titles at Enron Wholesale Services, the energy- and commodity-trading unit that brings in most of Enron’s revenue. Frevert, 46, was chairman and chief executive of Wholesale Services. He was named vice chairman.

Chairman Kenneth Lay said the two executives will help run the company while he selects Skilling’s successor.

Investors pushed Enron’s shares down more than 14% in the two days after Skilling quit.

Lay wasn’t more specific about the two men’s assignments.

“They’ll be looking at all of the businesses--the wholesale unit, government affairs. Anything that affects Enron,” Lay said.

Shares of Enron rose 40 cents to close at $38.16 on the New York Stock Exchange. They have plunged 56% in the last year as Enron’s plan to trade space on telecommunications networks collapsed along with the fortunes of Internet companies, and investors questioned whether Enron can continue to post huge gains in energy-trading sales and profit.

Skilling helped Lay transform Enron from a natural-gas pipeline company into the top competitor in energy trading. Before Tuesday, they were the only executives in the office of the chairman.

Skilling became chief executive in February as Lay, 59, held on to the chairman’s title. Skilling said Aug. 14 he quit for personal and family reasons, though he later said worry caused by the recent stock price decline contributed to his decision. Lay, who has taken over as chief executive, has had his employment contract extended to 2005.

Lay has been meeting investors and analysts to calm fears the firm may be hiding bad financial news, and that he will have a difficult time finding a new chief executive.