This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

McClendon Loses Chesapeake Chair Role In Overhaul

NEW YORK ( TheStreet) -- Chesapeake Energy's (CHK - Get Report) board and CEO roles are now split after the company's co-founder and chief executive Aubrey McClendon was replaced as chairman by former ConocoPhillips (CHK - Get Report) chair Archie Dunham.

The move is the biggest change in a sweeping overhaul of the struggling gas giant's board announced in June and put in place on Thursday.

Chesapeake Energy also said it elected four other independent members to its nine-member Board of Directors ,including three proposed by the company's largest shareholder Southeastern Asset Management and one proposed by activist investor Carl Icahn who recently took a large stake in the Oklahoma City-based oil and gas driller.

Southeastern Asset Management has elected Bob Alexander, Brad Martin and Frederic Poses to Chesapeake's board, while Icahn has nominated Vincent Intrieri. Those elections and Dunham's replacement of embattled CEO McClendon as chairman come as a quick response to Southeastern and Icahn's calls for changes to Chesapeake Energy's board that will help the company better manage its finances as a cash crunch looms.

After director Charles T. Maxwell retired from Chesapeake's board at the company's June 8 annual meeting, Richard Davidson, Kathleen M. Eisbrenner, Frank Keating and Don Nickles have resigned. Earlier in June, the New York City comptroller had asked for the removal of Oklahoma State University President Burns Hargis and former Union Pacific Chairman Richard K. Davidson as directors. Hargis and Davidson resigned after they weren't re-elected by shareholders at Chesapeake's annual meeting.

Of the changes, Chesapeake CEO McClendon welcomed new board members to help on the execution of, "our common mission to deliver to our shareholders the substantial net asset value we have created in the past seven years as Chesapeake has helped lead the unconventional resource revolution in the energy industry," in a press release.

"We believe this board will prudently guide, assist and complement management's efforts to capture its potential," said Southeastern Asset Management chairman Mason Hawkins in a press release.

"Chesapeake is now heading in the right direction. With the Board providing strong oversight, the management team will be sharply focused on realizing the value of its assets and the company will be well positioned to create substantial value for shareholders going forward," added Icahn in a statement.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
COP $64.40 -1.23%
CHK $16.60 -0.48%
AAPL $129.09 0.49%
FB $79.75 0.99%
GOOG $571.34 2.32%


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs