Chesapeake does more ‘splainin

May 19, 2009

Nearly three weeks ago, we footnoted Chesapeake Energy (CHK) for its interesting explanations about a wide range of goodies for Chairman and CEO Aubrey K. McClendon, who was the highest paid CEO last year, according to the Associated Press. As we noted on Perks Watch, McClendon also got $12.1 million from Chesapeake for selling his antique map collection to the company.

While the company provided explanations for these expenses in the proxy it filed on April 30, several days later, it was back with this amended proxy to further set the record straight. The filing was basically a copy of a letter to a reporter at the Daily Oklahoman, Chesapeake’s hometown paper, from General Counsel Henry J. Hood. In it, Hood tried mightily to explain McClendon’s bonus, the map collection, an investment in the Oklahoma City Thunder, the professional basketball team that McClendon has an ownership stake in, and catering services purchased from a restaurant where McClendon owns just shy of 50%.

Rather than trying to pull out excerpts, we suggest you read the letter in its entirety. We promise that you won’t be disappointed. Hat-tip to John Mihaljevic at Manual of Ideas for bringing this to our attention.

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