McClendon out as chairman

Replaced: Chesapeake board to name independent non-executive chairman

Reuters/Scanpix

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Luke Johnson

 01 May 2012 14:27 GMT

US gas giant Chesapeake Energy said it is replacing its embattled founder Aubrey McClendon as chairman of the board and will name an independent non-executive chairman in the “near future”.

McClendon will stay on as the company’s chief executive, Chesapeake said in a statement on Tuesday.

Chesapeake also said it is ending McClendon’s controversial well-participation perk that allows him to invest as a 2.5% partner in every new well the company drills.

The perk, known as the Founder Well Participation Programme (FWPP), has come under fire recently after it was revealed that McClendon had borrowed up to $1.1 billion to pay for his interest in the wells, using the profits of future wells as collateral. McClendon has been under increasing pressure…

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