Chesapeake to end CEO investment program
OKLAHOMA CITY—Chesapeake Energy says that it's ending a program that allowed CEO Aubrey McClendon to take personal stakes in the wells it drills as part of his compensation package.
Its board will also review financing arrangements between McClendon and any outside groups that may have done business with Chesapeake in the past.
Company shares plunged last week after media reports showed that McClendon borrowed as much as $1.1 billion against his 2.5 percent interest in company wells.
The program's 10-year term is set to expire at the end of 2015, but Chesapeake Energy Corp. says that McClendon agreed to end the agreement.
The company, based in Oklahoma City, also says that McClendon will disclose any financial deals that he has struck through the program as of Dec. 31.