New York pension fund manager urges Chesapeake shareholders to replace board

The state comptroller of New York is calling for an overhaul of Chesapeake Energy Corp.’s board of directors.

Similar sentiments have been common in recent weeks, as Chesapeake’s stock has fallen precipitously.

Comptroller Thomas P. DiNapoli, who is trustee of the New York State Common Retirement Fund, sent a letter Tuesday to other Chesapeake shareholders urging them to vote against retaining the two board members up for re-election this year, Oklahoma State University President Burns Hargis and former Union Pacific executive Richard K. Davidson.

“Chesapeake’s falling share price and current financial condition are reason enough to WITHHOLD votes from the entire board of directors. However, since only two directors are up for re-election this year, our withhold votes against V. Burns Hargis and Richard K. Davidson should be viewed as a proxy for the performance of the entire board,” DiNapoli wrote.

Hargis and Davidson are members of the Chesapeake board’s audit committee, which is charged with overseeing the company’s financial statements.