What’s $2 million between old friends?

November 13, 2003

Dynegy Inc. (DYN) , the once mighty Houston-based energy trading company that is facing multiple investigations, but which managed to eke out a $5 million profit this past quarter, sent the IRS a check for $2 million in October to cover tax obligations for options exercised by its former CEO, Chuck Watson. The $2 million was in addition to the $6 million Dynegy already sent the IRS earlier this year to cover the taxes on options Watson exercised on his way out the door in May 2002, according to the 10-Q filed Thursday. In the Q, Dynegy also notes that Watson, along with former Dynegy President Steve Bergstrom and former CFO Rob Doty, continue to press for over $40 million in severance payments. An arbitration hearing for Doty, who resigned in June 2002, was supposed to begin this month, but has been pushed off until next June. Watson’s arbitration hearing has also been postponed from February to June.

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