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

Gas-led recession a 'near certainty' in Europe

Centre for Economics and Business Research estimates the risk of a recession in Europe this winter at approximately 40%

ABB scoops global energy automation technology award

ABB excels in innovating subsea systems and electrification services and providing underwater control solutions according to Frost & Sullivan

INEOS Köln awarded €770,000 for green hydrogen study

State funding will support feasibility study for the construction of 100MW water electrolysis plant for green hydrogen at the INEOS site in Köln

UK receives £2.7bn upfront funding to boost grid capacity

Utilities

Poland and Germany best placed for gas-to-coal switch

Oil & Gas

Leclanché fire retardant additive cuts battery fire risk

Renewable Energy