Tuesday, May 1, 2012

Shareholder Relief: Chesapeake Seeks New Chair


The clouds that have gathered over Chesapeake Energy appeared to have scattered a bit on Tuesday, after the natural gas producer acceded to investor demands on a number of fronts, NY Times’ Dealbook reports.

Shares in Chesapeake soared more than 9 percent in premarket trading after two crucial bits of news: the company said it was ending a controversial well ownership program for its chief executive, Aubrey K. McClendon, 18 months ahead of schedule, and announced its intent to look for a new, independent chairman. Mr. McClendon “will receive no compensation of any kind” in connection with the early termination of the well participation program, the company said.

After the bell, Chesapeake shares were still up about 6 percent, at $19.53.  It seems clear that the company made its decision with an eye toward keeping shareholders happy....


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