Chesapeake Energy Corp. (CHK:US) will introduce performance-based awards as part of Chief Executive Officer Aubrey McClendon pay plan for 2012, after cutting his 2011 compensation by 15 percent.
The variable performance-based annual awards were approved by the board in December, the Oklahoma City-based company said in a proxy statement today for its June 8 annual shareholder meeting. Chesapeake altered its CEO pay plan after holders of 42 percent of its stock last year voted against the company’s executive compensation plan and its largest shareholders said McClendon’s pay had been “too high,” according to the proxy.
McClendon made $17.9 million last year compared with $21 million the year before. The board announced on May 1 it will bring in an independent chairman, stripping McClendon of the role after Reuters reported he used personal stakes in company- operated wells as collateral on millions of dollars in loans.
“The past month has been a challenging time for our company,” McClendon and Pete Miller, Chesapeake’s lead independent director, wrote in a letter to shareholders in the filing. “We would like to take this opportunity to emphasize the board’s continued commitment to serving the interests of our shareholders and improving corporate governance.”
Chesapeake fell (CHK:US) 2.9 percent to $16.69 at 9:47 a.m. in New York. The shares have declined 25 percent this year.
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