Two directors resign from Westar board

Becker, Budig closely allied with Kansas University

? Two Westar Energy Inc. directors with Lawrence ties, who also sat on the committee that recommended controversial salary packages for former Westar top executives, have resigned their positions.

In a brief statement announced by the company on Friday, Westar said that Gene Budig, a former Kansas University chancellor, and Frank Becker, a high-profile KU alumnus and former member of the Kansas Board of Regents, resigned from the company’s board of directors to pursue personal interests.

Neither Budig nor Becker, both longtime board members, could be reached for comment.

However, Westar, the state’s largest electric utility, is under investigation by the U.S. Attorney’s Office and Securities and Exchange Commission. It is the subject of numerous lawsuits filed by shareholders.

Federal investigators are looking into the pay package of Westar’s former chief officer and president David Wittig and other company officials, and the use of Westar’s corporate jets, according to a proxy statement to shareholders of the Topeka-based company.

The company also has been ordered by state officials to restructure while carrying about $3 billion in debt.

Budig, now a consultant to major league baseball, lives in Princeton, N.J., and had been a Westar board member from 1987 to 1998 and then rejoined in 1999. His current term was to expire in May 2004.

Becker, who lives in Lawrence, has been a member of the Westar board since 1981. His current term was to expire in May 2005.

“Frank and Gene have faithfully served Westar Energy for many years,” said Charles Q. Chandler IV, Westar’s board chairman. “I wish each of them the very best in the future and thank them for their long and devoted service to the company.”

“Mr. Becker desires to focus his attention on his business and personal interests, and Dr. Budig intends to pursue his research and writing objectives,” Chandler said.

While the company was spiraling into debt, Budig and Becker served on a board committee that recommended compensation packages for Wittig and former executive vice president Douglas Lake that were worth tens of millions of dollars.

According to statements filed with the Securities and Exchange Commission, each Westar director was paid in stock awards and fees at least $75,000 for board work in 2002.

John Dicus, another high-profile KU alumnus and prominent banker, was also on that committee and resigned from the board in November 2002 to focus on other business interests.

Wittig resigned in November as president and chief executive officer after being indicted on federal charges of defrauding a Topeka bank in connection with a $1.5 million loan unrelated to Westar business. He has pleaded innocent to the charges. A trial is scheduled for June. Lake was placed on unpaid administrative leave in December.

Westar has said it would release to the public Thursday its internal investigation on the use of corporate aircraft and issues currently being probed by a federal grand jury.

Protection One, a home security company that is a Westar subsidiary, also announced Friday that Budig had resigned from its board.