Enron Corp. - University of California | Office of The President

Dollars per Share
Enron Corp.
Defendant K.Hannon's Quarterly Shares Sold (Dollar Volume)
June 1996 - November 2001
$100
$80
$60
$40
$20
$0
(t) Defendant Kevin P. Hannon ("Hannon") was, until his resignation in 8/01,
Operating Officer of EBS. Hannon previously was Enron's president of trading and commodities
business. Hannon was involved with, and made positive public statements about, Enron-Online.
Hannon also participated in the bandwidth trading by which Enron misstated its financial results.
At Hannon's request, he was not considered an officer of Enron specifically so he could avoid
reporting his stock sales. During the Class Period, while in possession of adverse undisclosed
information about the Company, Hannon sold 94,000 shares of his Enron stock for $7,852,751 in
illegal insider trading proceeds. Hannon did sell call options 5 on Enron stock prior to 5/1/01 such
that he would profit so long as Enron stock dropped below $70 per share by 1/19/02. This
defendant's insider selling during the Class Period is show below:
Summary of Insider Sales:
Class Period Shares sold: 94,000
Proceeds from Sales: $7,852,751
Enron Stock Price
J S D M J S D M J S D M J S D M J S D M J S D M
1996 1997 1998 1999 2000 2001
5 A call option entitles a buyer the right to force Hannon to sell, at a specified exercise price,
such that Hannon would (and did) profit if the stock price declined below the exercise price.
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Class Period
10/19/98 - 11/27/01
Insider Sales
$10
$8
$6
$4
$2
$0
Proceeds (Millions)