Tags: Dynegy | CEO | Chuck | Watson | Resigns

Dynegy CEO Chuck Watson Resigns

Tuesday, 28 May 2002 12:00 AM

Dynegy's board of directors appointed Glenn Tilton as interim chairman. Tilton, a Dynegy board member, also services as vice chairman and a board member of the ChevronTexaco Corp., which owns 26.6 percent of Dynegy.

Watson, 52, who served as Dynegy's chairman and chief executive officer since the company's creation in 1985, issued a brief, written public statement.

"For 17 years, I have endeavored to build value for all our stakeholders," he said. "Dynegy combines strategic assets, solid management and proven strategies to navigate through the immediate challenges and meet the opportunities ahead."

Watson's resignation comes amid investigations by the Securities and Exchange Commission into the company's accounting related to a deal on natural gas known as Project Alpha and for its involvement in so-called wash trades.

Wash trades involve the buying and selling of the same amount of electricity or other commodities at the same time. They can be used to inflate a company's revenues or trading volumes but don't contribute to profits.

"Chuck Watson played a critical role in the creation of the merchant energy business and in the emergence of Dynegy as a major force in the global energy industry," Tilton said in a statement. "Fortunately, Dynegy has a solid base of assets and strong business fundamentals."

Investor reaction to the Watson resignation was positive. Shares of Dynegy gained 39 cents, or 4.19 percent, to close Tuesday at $9.69 on heavy volume of 13.9 million shares traded on the New York Stock exchange.

ChevronTexaco issued a statement Tuesday, but the company had no comment concerning Watson. It did offer praise for Tilton and support for the remaining Dynegy management team.

"As a major stockholder with strong commercial relationships with Dynegy, ChevronTexaco has a vested interest in supporting a strategy that will restore investor confidence in the company," the company said.

The Dynegy board also named Daniel Dienstbier, also a company board member, as interim chief executive officer. Dienstbier is also president of Northern Natural Gas, the former Enron Corp. pipeline.

A search will be conducted for a new chairman and chief executive officer.

Copyright 2002 by United Press International.

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Dynegy's board of directors appointed Glenn Tilton as interim chairman. Tilton, a Dynegy board member, also services as vice chairman and a board member of the ChevronTexaco Corp., which owns 26.6 percent of Dynegy. Watson, 52, who served as Dynegy's chairman and chief...
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2002-00-28
Tuesday, 28 May 2002 12:00 AM
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