Aubrey McClendon, President of Cheseapeake Oil settled a stockholder’s suit filed when a few disgruntled share holders objected to his employment bonus of $75,000,000 Dollars plus, objected to Cheseapeake buying McClendon’s 12 Million Dollar map collection. I have a collection of antique road maps, I wonder what their worth?
Here is the scoop:
Oklahoma judge approves Chesapeake settlement in shareholders’ lawsuit
An Oklahoma County judge has signed off on a settlement in lawsuit filed by Chesapeake Energy Corp. investors upset over CEO Aubrey McClendon’s compensation in 2008.
An Oklahoma County judge on Monday accepted a settlement in a lawsuit filed by several institutional investors that objected to McClendon’s $75 million bonus in 2008 even though the company’s stock price plummeted that year along with natural gas prices.
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The company’s board gave McClendon a $75 million bonus and bought his antique map collection for another $12 million, drawing outrage from investors.
Five groups, led by the Louisiana Municipal Police Employees’ Retirement System, filed lawsuits against Chesapeake and its board.
The parties reached a settlement in the case last fall, calling for McClendon to buy back his map collection while the company adopted “significant” governance reforms.
“This is a rare concession by Mr. McClendon,” said attorney Marc Gross, who represented the plaintiffs in the case. “We’re very proud to have gotten this settlement.”
Oklahoma County District Judge Dan Owens accepted the settlement Monday morning, despite objections from two shareholders. Owens said Chesapeake has about 660 million outstanding shares, but only two shareholders voiced any complaint with the settlement, leading him to conclude it is fair and reasonable.
The judge is ready to sign off on the agreement, although the Chesapeake shareholders who objected to the deal still can appeal his ruling. Attorneys on both sides of the case were pleased the judge agreed to accept their settlement agreement. Gross said it is unusual for companies or executives in such securities cases to make significant payments like McClendon has agreed to do. He will pay $12.1 million, plus interest, for his map collection. Gross also said Chesapeake has taken steps to establish a review process to avoid such compensation issues in the future. “We’re very pleased with the outcome,” he said. Chesapeake did not admit any wrongdoing in the settlement.
“Chesapeake stands behind its board’s approval of Chief Executive Officer Aubrey McClendon’s 2008 incentive award, but feels this settlement is in the company’s and its shareholders’ best interest,” said Henry Hood, the company’s general counsel. “We are pleased to put this matter behind us and hope shareholders and the public will focus on our efforts to promote natural gas as the clean fuel of choice for power generation and transportation, creating American jobs and reducing dependence on foreign oil.”