Chesapeake to overhaul board amid investor criticism

 

   Chesapeake Energy Corp. could be on its way to making amends with disgruntled shareholders. 

by Jay F. Marks Modified: June 5, 2012 at 8:44 am •  Published: June 5, 2012
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   Chesapeake Energy Corp. could be on its way to making amends with disgruntled shareholders. 

  The Oklahoma City oil and natural gas company announced Monday it would replace four members of its board of directors amid ongoing questions about its corporate governance. 

  A fifth member will come on board later this month as Chesapeake replaces a retiring director with a new independent chairman, who will replace embattled CEO Aubrey McClendon in the role.   

The company did not say which directors will be replaced, but the new members will hold a majority on Chesapeake’s nine-member board.  

The changes come after “extensive” discussions with the company’s two largest shareholders. 

  Southeastern Asset Management and billionaire activist Carl Icahn, who together hold more than 21 percent of the company’s stock, will nominate four new board members.   

Those new members will be able to sign off on the new chairman being selected by the existing board. The new independent chairman will not have any previous relationship with Chesapeake. 

  The reconstituted board will be introduced on or before June 22, the company said Monday.  


by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
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