Chesapeake Energy Corporation announced today that CEO, President, and Co-Founder Aubrey McClendon would be retiring effective April 1, 2013. This is amid previous allegations of impropriety that have been under investigation by the board of directors. The allegations involved the fact that McClendon received personal loans from business partners totaling hundred of millions of dollars.
The press release stated that the final report of the allegations would be released mid-February, but that they had (to date) found no improper conduct. It’s interesting that they used the words “to date”. Rest assured, I’ll be following up after the report is released.
The company did stress that this would not lead to an interruption of their planned $6 billion drilling program for 2013, and that McClendon would stay on as CEO until a successor was found. As for McClendon, I haven’t heard the details of his pay package, but when he retired he “will receive his full compensation and other benefits to which he is entitled in accordance with the terms of his employment agreement.” I’m sure he has a heck of a golden parachute.
Shares of CHK were up 9% in after-hours trading. It sounds like investors are happy with the news.
For those of you that want to read the whole story: See the Press Release from Chesapeake.