Thursday, April 26, 2012

McClendon to Give Up Well Participation

Under intense pressure, Chesapeake Energy today announced that CEO Aubrey McClendon has begun negotiations with the company's board of directors to terminate the infamous Founder Well Participation Program, which has flummoxed many investors and nearly all good corporate governance types. The plan is part of McClendon's employment contract and was set to terminate Decemer 31, 2015, although it could have been renewed. No details yet, but it will require an amendment to his employment contract.

It will be interesting to see the terms of the new deal, but I doubt Aubrey will get left out in the cold by his hand-picked board.

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