Chesapeake Energy Corp.'s new chairman Archie Dunham will receive about $1.1 million this year as compensation for his effort to clean up the Oklahoma City energy company's finances and reputation, according to regulatory filings posted Wednesday evening.
The other new directors will receive about $350,000, the filing stated.
Under Chesapeake's director compensation plan announced in May, each director will receive annual compensation of $100,000 in cash and about $250,000 in restricted stock, plus reimbursements for travel and other expenses directly related to their service as directors.
Chesapeake said Wednesday that the cash and stock compensation for the new directors will be prorated for 2012, most likely cutting the amount in half.
In addition to the prorated compensation, each newly appointed director also will receive 10,000 shares of Chesapeake stock on July 2. At Wednesday's closing price of $17.93, that bonus would be worth more than $179,000, bringing the new directors' 2012 compensation back to about $350,000. The company said a “substantial portion” of the bonus will be unrestricted.