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Enron CEO Ken Lay resigns from Compaq's board

Ken Lay, chief executive of troubled energy giant Enron Corp, stepped down from Compaq Computer Corp's board of directors on December 31, a spokesman for the No 2 personal-computer maker said on Friday.

The move comes after Houston-based Enron filed the largest bankruptcy case in US history in December. In December, drugmaker Eli Lilly and Co said Lay had resigned from its board.

At the heart of Enron's problems were complex financial partnerships -- known as special-purpose entities -- set up by executives of the company and used to keep debt off its highly leveraged books. Disclosure of these deals lead to a massive loss of investor confidence, and the company headed for bankruptcy court.

Compaq, which has announced plans to merge with Hewlett-Packard Co, said it had no immediate plans to replace Lay as the size of its board can fluctuate from seven to 12 members.

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