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Strained relations


Chesapeake’s annual shareholder meeting brings a change in leadership.

Clifton Adcock June 8th, 2012

After failing to receive a majority of shareholder votes, two members of the Chesapeake Energy Board of Directors resigned during today’s shareholder meeting.

Burns HargisBurns Hargis

Although re-elected to the board by fellow members, Burns Hargis and Richard Davidson resigned after receiving only 26 and 27 percent, respectively, of shareholder votes.

Over the past year, the value of Chesapeake stock has been almost halved amid criticism of CEO Aubrey McClendon’s financial dealings.

The Oklahoma City-based company, which is the second largest producer of natural gas in the country, has tried to reduce its debt and concentrate more on oil than natural gas to do so. Immediately prior to today’s meeting, Chesapeake officials announced it had agreed to sell its midstream assets for around $4 billion.

“Chesapeake appreciates shareholder feedback and will act appropriately with regard to the matters voted on today,” a statement from the company read. “Chesapeake has recently taken important actions to enhance corporate governance and increase management oversight by, among other things, reconstituting the Board of Directors.”

The company also said it still plans to add a new non-executive chairman and four independent members to the nine-member board within the next two weeks.

“Chesapeake will also take the necessary actions so that shareholders will have the opportunity to elect the entire Board of Directors at the 2013 Annual Meeting of Shareholders,” the statement read.

For more on this story, see the June 13 issue of Oklahoma Gazette.

 
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