Chesapeake Energy Corp. directors have asked shareholders to approve executive pay and corporate governance changes they say are essential for the Oklahoma City energy company's future.
The directors addressed the challenges of the past year and outlined proposed changes as part of their annual proxy filing for shareholders released Friday.
“After a difficult year in which we saw decade-low natural gas prices and experienced unprecedented scrutiny, Chesapeake has emerged as a strong company with a promising future,” the directors said in the filing. “We believe that our corporate governance and executive compensation reforms further strengthen the company by enhancing oversight and accountability.”
The directors also outlined the changes they have made over the past year and the additional moves they have proposed to shareholders.
“In the past year, the board has implemented governance reforms focused on enhancing financial and management oversight, board accountability to shareholders and corporate responsibility,” the directors said in the proxy.
One of the main focuses over the past year has been to more closely tie pay and performance.
Since June, the board has cut the CEO salary by $1 million and held base salaries flat for some top executives. The directors last week asked shareholders to approve a plan they say would tie 91 percent of executive pay to shareholder interest, with only 46 percent of the pay guaranteed.