Mind-blowing video shows CEO asking employees to buy stocks 64 days before company imploded
The firm would be bankrupt before the end of the year
A mind-blowing video shows the CEO of an energy company asking employees to buy up stocks just 64 days before the firm imploded.
Enron was an American energy company that became embroiled in a scandal in the early 00s.
Investors were told to hold onto their shares while executives began unloading them, causing the share price to drop.
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And now a video has resurfaced on social media which shows the CEO at the time, Ken Lay, asking employees to buy shares in the firm.
The footage was taken on August 16, 2001, just two days after the previous CEO, Jeff Skilling, had resigned.
In the clip, Lay addressed the workforce, saying: “I’m going to share with you some of the things going on here shortly and show you the reason I am excited and I do think that the next several months, next few years, are going to be great for Enron and great for Enron’s employees and that’s all starting now.”
During the meeting, the CEO encouraged his employees to buy up shares in the business, claiming that it was a great market to be in.
Viewers took to the YouTube comment section to share their reactions to the video, with many sharing a similar sentiment.
One user wrote: “It took 64 days after this before bankruptcy.”
Another said: “All those employees would lose their 401Ks and Enron stock.”
A third person joked: “This seems like such a great company. Should I apply?”
And a fourth user added: “His family walked away with millions. His employees who worked hard and also invested in the company walked away with absolutely nothing. Their nest egg was stolen by this guy.”
While stock had been continuing to decrease, many people were calmed by Lay’s demeanour and saw the decreased price as an opportunity to buy up stock.
However, despite his encouragement to get people to invest, Lay was accused of selling over $70 million worth of stock and used the money to repay cash advances on lines of credit.
He also went on to sell another $29 million worth of Enron stock in the open market.
Lay’s wife, Linda, was also accused of doing similar - selling a whopping 500,000 shares of the company which added up to $1.2 million.
Just 64 days after the infamous meeting took place, Enron, which was once named ‘America’s Most Innovative Company’ by Fortune Magazine, would officially be bankrupt.