April 26, 2012 at 13:07 PM EDT
Chesapeake Retreats, Won’t Extend CEO Compensation Policy
After a Reuters story last week questioned Chesapeake Energy’s (CHK) practice of allowing CEO Aubrey McClendon to take stakes in Chesapeake’s wells and then use those stakes as collateral for loans, the company initially took a defensive stance. But today, the natural gas giant said it would no longer allow McClendon to have a contractual [...]

After a Reuters story last week questioned Chesapeake Energy’s (CHK) practice of allowing CEO Aubrey McClendon to take stakes in Chesapeake’s wells and then use those stakes as collateral for loans, the company initially took a defensive stance. But today, the natural gas giant said it would no longer allow McClendon to have a contractual right to take those 2.5% stakes once the agreement runs out on December 31, 2015. McClendon has also agreed to provide more info on those stakes:

Reuters
Aubrey McClendon

“Following consultation with the company’s Board of Directors, Mr. McClendon will separately disclose supplemental information regarding the interests he has acquired through the company’s Founder Well Participation Program as of December 31, 2011. The company also announced the Board of Directors is reviewing the financing arrangements between Mr. McClendon (and the entities through which he participates in the FWPP) and any third party that has had or may have a relationship with the company in any capacity.”

The stock, which had fallen hard after the news first broke, is down about 2.3% this afternoon.

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here