Thursday, May 3, 2012

More McClendon Conflict of Interest Info

Once my grassroots campaign to become Chairman of Chesapeake is successful I'm going to have to take Aubrey out for a beer and work some of this out.

He is a good land man, but I think some people may have lost a little bit of confidence in his judgement:

Chesapeake Energy Corp. (CHK) Chief Executive Officer Aubrey McClendon agreed to sell $88 million of his personal oil and gas interests to investment vehicles created by Wachovia Corp. three weeks after his company used the bank in a similar $600 million deal, a court filing shows.
The same Wachovia bankers worked on both August 2008 transactions, known as volumetric production payments, according to documents filed last year by Chesapeake in a Manhattanfederal court. The deals came after a separate January 2008 Wachovia transaction that yielded McClendon $44 million, the documents show.
“It’s in the interest of the other parties to give him a break on his transaction if they get a break on larger transactions with the company,” said John Coffee, a law professor at Columbia University, who’s written on corporate governance. “There’s a concern,” especially if the transactions weren’t disclosed to shareholders, he said.
Full article:

No comments:

Post a Comment