At the end of the August 13, 2001 Enron board meeting, Ken Lay called for an executive session. This meant that only the board members could stay in the room.

In a short and extremely emotional meeting, Jeff Skilling announced his resignation. He was in tears. He told the board how much he loved Enron but also how guilty he felt that he hadn't "been there" for his children. He insisted that the press release announcing his resignation not say anything about his family, because he did not want his children to feel responsible.

He refused to allow the board to say he was resigning for health reasons, even though everyone present was worried about Skilling's mental health. Ken Lay later said that Enron's directors tried to convince Skilling to stay, but he was adamant.

He had already agreed to forfeit severance pay and to repay a $2 million loan. At 8:40, Skilling left the room. It had taken half an hour.

The next day, the board concluded its business in the morning. Skilling left the meeting at 11:35. "I've resigned," he told his assistant, Sherri Sera. The news flew through the halls of Enron.

After the stock market closed that day, the press release announcing Skilling's resignation hit the wires. the explanation given for Skilling's resignation was both curt and bewildering. "I am resigning for personal reasons," Skilling said in the statement. "I want to thank Ken Lay for his understanding of this purely personal decision..." Mark Palmer argued to Lay that the company needed to say something more to calm the markets: "Ken, 'personal reasons' ain't going to fly. Is Jeff sick?"

"It depends on how you define sick," replied Lay.