Pages

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