Natural gas producer Chesapeake Energy will split the jobs of chairman and chief executive, and bring an early end to a programme that granted chief executive Aubrey McClendon stakes in company wells, an arrangement that sparked investor anger and potentially created conflicts of interest.
The Founder Well Participation Program (FWPP), which allowed Mr McClendon buy a 2.5 stake in each of Chesapeake’s wells, will end 18 months early, in June 2014.
Chesapeake’s moves came less than two weeks after Reuters reported that McClendon had taken out as much as $1.1 billion in personal loans with his well stakes as collateral, an arrangement that experts said posed potentially serious conflicts of interest. – (Reuters)
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