Chesapeake Falls as It Nears Chairman Appointment Deadline
Chesapeake stated early last week that current chairman and CEO Aubrey McClendon will give up his chairman position as soon as the board announces a new chairman. The company says the board will decide on a new chairman, along with four board member replacements, on or before June 22.
These board changes were inspired by Carl Icahn's 7.56% stake in the company revealed in a May 25 SEC filing. Icahn wrote a letter to the company that suggested it separate the positions of CEO and chairman and replace four board members. This followed numerous corporate governance concerns about the company that contributed to an approximate 30% decline in Chesapeake's share price from the begining of 2012 until May 25.
Shares of Chesapeake Energy were trading close to 2% lower for the day.
Disclosure: At the time of this writing, I did not own shares of any companies mentioned in this post.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.