Upstairs, downstairs…

May 14, 2004

Next week, former mid-level Dynegy (DYN) executive Jamie Olis will head off to prison to begin serving his 24 year sentence after being convicted on several counts of fraud at the once mighty Houston energy trading company. Meanwhile, one of Dynegy’s former top execs, Steve Bergstrom, who resigned as president in October 2002, will be able to collect his $10.4 million severance package, according to a disclosure in the company’s recent Q. Dynegy has argued that Bergstrom, along with former Chief Executive Chuck Watson and former CFO Rob Doty didn’t deserve to collect their severance. But an arbitration panel ruled last against the company last month. In addition to the $10.4 million, Dynegy says in the Q that it expects to have to pay interest and attorneys fees, which should tack on another nice chunk of change. Next month, Watson, who is seeking to collect over $28 million in severance from the company, takes his case before an arbitration panel, which has to have the folks at Dynegy worried, given the recent outcome with Bergstrom.

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