|Page (1) of 1 - 06/08/12||email article||print page|
Chesapeake CEO faces shareholders critical of his business dealings, depressed stock price
Chesapeake Energy CEO Aubrey McClendon is facing shareholders for the first time since reports about personal business dealings sparked a drop in the company's shares and charges of insufficient oversight by the board of directors were leveled.
The nation's second-largest natural gas producer has also been plagued by a large debt load and plunging natural gas prices. Shares are down 20 percent since Jan. 1.
The share sell-off followed disclosure that McClendon was allowed to borrow money from a company that Chesapeake was doing business with. Shareholders began calling for a shake-up of the board after Chesapeake acknowledged that directors hadn't fully scrutinized the loans' details.
Chesapeake has agreed with Carl Icahn and Southeastern Asset Management, its largest shareholder, to replace four of nine board members with directors they choose.