Chesapeake Board Backtracks on What It Knew About CEO Loans
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Chesapeake Energy Corp.’s board backed away from a week-old endorsement of Chairman and Chief Executive Officer Aubrey McClendon’s practice of using personal stakes in company wells to secure loans, pledging now to investigate the transactions.
While directors were “generally aware” that McClendon had used his interests in company-operated wells as collateral for personal loans, it didn’t review or approve any of the individual transactions, Oklahoma City-based Chesapeake said in a statement today.