I had written this back in 2006.
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Certainly, Enron executives led the collapse of Enron. What was the result though? Did the employees get their benefits or jobs back? Certainly not! So, what was the whole purpose of legal proceedings? Undeniably, Skilling is one “f****” smart man as he had said when he was interviewed for Harvard Business School admission.
Skilling’s strategy of operating Enron whether it was right or wrong is a matter of debate in many law school and business school classrooms. Some argue that his strategy was risky (what’s risky though?) but not wrong. Others argue that his strategy was unlawful. Many support his conviction but there is another fraction that strongly disagrees.
His strategy may have gone wrong and he was not able to keep afloat the sinking giant that he built.
Skilling was not a mere employee of Enron. He spent years making it in the ranks of the fastest-growing companies in the world. It was his big baby.
Then what is the purpose of sentencing him to twenty-four years? Some might argue – to create fear. The origin of sentencing and the prison system comes from people whose presence in society was perceived as a threat to others’ lives. Sentencing is for people who are a fear to society. Then the question arises: Are corporate executives a threat to society? It’s hard to imagine Skilling or a similar type of guy doing a physical injury to anyone. Then why put him in jail? Why not make him earn and pay back?
If those guys could build Enron in fifteen years, it’s a good possibility that they could build another Enron in the coming years. The verdict should be to punish the culprit and force them to pay the damages to the shareholders and employees. Let them start a company, make it profitable, and pay themselves minimum wages until they recover the full loss. Liquidation will neither satisfy shareholders, nor it will bring the 20,000 jobs back. It will take another few decades to form another company that can employ 20,000 with this growing inflation and unemployment.
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Updated on March 22nd 2018: Mr. Skilling is out of prison under the Second Act signed by President Donald Trump