Subject: change of control provisions
as many of you know , i have a provision in my employment contract which provides for a payment of $ 20 million per year for the remaining term of my contract in the event of a change of control of enron . the merger with dynegy , or a similar transaction with any other company , would trigger this provision on closing . assuming the merger with dynegy is closed within 6 - 9 months , as we expect , this provision would entitle me to total payments of slightly more than $ 60 million .
many ceos have change of control provisions in their employment contracts and mine has been in place since 1989 . but given the current circumstances facing the company and our employees , i have been giving a lot of thought these last few days to what to do about this payment . initially , i thought i would use part of the funds for a foundation for our employees and take the remainder in stock and cash . however , after talking to a number of employees this afternoon , i have decided that the best course of action would be for me to waive my right to any of this payment . therefore , at closing , i will receive no payments under this provision .
i know this action does not remedy the uncertainty that you and your families face . but please know that i will continue to do everything in my power to serve the best interests of enron ' s employees and shareholders . i am still very proud of what we have built at enron , and i want to continue working with all of you to correct the problems and restore enron to its rightful place in the energy industry .
thank you .