Chesapeake Energy Corporation Reduces Board Compensation

The Board of Directors of Chesapeake Energy Corporation CHK today announced that it has adopted a new compensation arrangement for outside directors that reduces compensation by approximately 20% and eliminates the use of fractionally owned aircraft for personal travel by outside directors. The Board has taken this action in consultation with an independent compensation advisor as part of a broader review of the company's executive compensation programs. As noted in Chesapeake's recently filed proxy statement, the Board had been reviewing its compensation for 2012 and beyond and today's announcement completes that review process for the Board's compensation arrangements. The proxy statement also discloses that the company has implemented a number of changes to its executive compensation program, including reducing the Chief Executive Officer's compensation for 2011 and better aligning the entire executive management team's compensation with company performance for 2012 and beyond, as well as retaining an independent compensation advisor for the Board's Compensation Committee. Under the new Board compensation arrangement, which is effective immediately, outside directors will receive total annual compensation of $350,000, comprised of a $100,000 cash component and a $250,000 equity component. This reduces director compensation to a level at or below the average director compensation of the company's peers.