Chesapeake's McClendon Forced to Step Down

By Admin
Chesapeake Energy Corp cracks down on Chairman and founder Aubrey McClendon, announcing that he will be replaced in the near future. The move will als...

 

Chesapeake Energy Corp cracks down on Chairman and founder Aubrey McClendon, announcing that he will be replaced in the near future. The move will also end a controversial program that grants McClendon minority stakes in the company's wells.

Last week, the board said that McClendon failed to fully disclose to them the extent and details of the $1.1 billion in personal loans that he had received from corporate lenders. With those loans, he was able to acquire a 2.5 percent share in every well that the company drilled each year. The SEC and the IRS have launched investigations into the matter.

SEE OTHER TOP STORIES IN THE ENERGY DIGITAL CONTENT NETWORK

Matt Damon to Star in Anti-Fracking Film

BP Oil Spill Respose Probe Leads to First Arrest

Check out April's issue of Energy Digital!

He will receive no compensation of any kind in connection with the Founders Well Participation Program, the company said.

"The Board is focused on serving the interests of shareholders. We believe separation of the chairman and CEO roles will improve Chesapeake's corporate governance and the early termination of the FWPP will eliminate a source of controversy, both of which should send a positive signal to the market and improve shareholder value," Merrill "Pete" Miller, Jr., Chesapeake's lead independent director, said in a statement.

The FWPP program will come to a end, but not until 2014, giving investors reason to shy away from shares, which are up over 9 percent as of today.

 

DOWNLOAD THE ENERGY DIGITAL IPAD APP

 

Share

Featured Articles

5 minutes with Stuart Broadley, Energy Industries Council

EIC CEO Stuart Broadley reveals the challenges that lie ahead for oil and gas firms now net zero is becoming an increasingly important goal for businesses

SAP: Is 'complex' wind energy supply chain slowing adoption?

SAP digital supply chain and manufacturing expert Darcy MacClaren warns complex logistics and complicated regulations are limiting wind energy adoption

Decentralised energy key to circumventing grid delays

Aggreko is advising the sector to consider short to mid-term decentralised energy solutions as an effective means of maintaining business continuity.

Renewable energy to become top source of electricity by 2025

Renewable Energy

Nuclear energy — the unsung hero of the climate challenge

Renewable Energy

UK and US announce energy partnership

Oil & Gas