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LordGerald
05-21-2009, 03:27 PM
Some more backlash against Aubrey OKCBiz seems to be the only media source covering this in detail. I find it interesting how these things keep happening, yet the veil of goodwill, given today's river tower announcement is still out there.

Does anyone know the full extent of CHK's issues, or is this just a common thread of events that occurs with all big corporations? When is the facade coming down?

link to OKCBiz.com story:

OKCBiz > Two more groups file suit against Chesapeake's Aubrey McClendon (http://www.okc.biz/article/05-21-2009/Two_more_groups_file_suit_against_Chesapeake_s_Aub rey_McClendon.aspx)

ultimatesooner
05-21-2009, 04:07 PM
I thought all of the stuff in the article was old news unless these are more lawsuits on top of the other lawsuits

LordGerald
05-21-2009, 04:33 PM
I thought all of the stuff in the article was old news unless these are more lawsuits on top of the other lawsuits

It's not old news. Its more of the same. Two NEW lawsuits filed yesterday. It seems like old news because there's a lot of lawsuits in the queue now.

wsucougz
05-21-2009, 05:07 PM
NEW lawsuits, OLD news. It's regarding the $75 million bonus.

bluedogok
05-21-2009, 07:40 PM
Well...fund managers have to find someone to blame for their losses because we all know they won't take responsibility for anything bad that happens themselves...

OKCTalker
05-22-2009, 09:54 AM
Well...fund managers have to find someone to blame for their losses because we all know they won't take responsibility for anything bad that happens themselves...

Mini-hijack. Some state retirement funds around the nation are seeing Chrysler-related losses because they were in the $6.9 billion in preferred holdings, for which the government offered $2.25 billion. They refused and Obama ripped into them for being a selfish "small group of speculators" (where else is a 67.4% cramdown defined as "selfish"?). Counting his Chryser losses now into the millions, the Indiana state treasurer has stated that he won't risk investing additional pension funds in companies receiving bailout money because "the risk is too great for any prudent investor to accept."

So like Chesapeake investors, these investors got nailed, but unlike Chesapeake investors, they can't sue the federal government for recourse.

Forgive the hijack, but it was related, and I honestly don't think that any invesetors will prevail in their quest to recover losses.

Rover
05-23-2009, 08:27 AM
Let's see...the government stepped in to try to stabilize a continuously failing Chrysler whom investors had blinders on about. Chrysler has continuously been in trouble for 30 or more years. Now you want to blame Obama because investors ignored the fundamental trouble. It's like a bum getting mad because they were offered a hamburger instead of a steak dinner when they were starving to death. Unbelievable.

There is a basic relationship between high risk and high reward. Ignorant or arrogant fund managers just wanted the high reward without facing the high risk. Are people just stupid? I'd like a million dollar a year job without having to work at it too, but it just doesn't happen that way. For supposedly savy investors and managers they sure were either naive or ignorant, or just plain arrogant.

bluedogok
05-23-2009, 09:05 AM
There is a basic relationship between high risk and high reward. Ignorant or arrogant fund managers just wanted the high reward without facing the high risk. Are people just stupid? I'd like a million dollar a year job without having to work at it too, but it just doesn't happen that way. For supposedly savy investors and managers they sure were either naive or ignorant, or just plain arrogant.
Investing, whether personal or institutional is not much different than laying money down on a craps table in Vegas. There is always investor arrogance in a bull market, they feel that they "can't lose" and stay in too long because they become intoxicated on the gains that feed their greed/ego. Then when those gains evaporate and the bears take over they are always looking for someone else to blame. It's like all those people who lost their life savings with Madoff, they failed at the fundamental advice of investing, diversification, don't put all your eggs in one basket, but they did because they became intoxicated.

Luke
05-23-2009, 09:06 AM
Chrysler has continuously been in trouble for 30 or more years.


the government stepped in to try to stabilize a continuously failing Chrysler whom investors had blinders on about.

Sounds like a GREAT use of taxpayer dollars to me!

:rolleyes:

soonerguru
05-23-2009, 12:32 PM
Sounds like a GREAT use of taxpayer dollars to me!

:rolleyes:

What am I missing here? Isn't the administration moving Chrysler toward bankruptcy?

wsucougz
05-23-2009, 12:58 PM
Stay on target.

http://i92.photobucket.com/albums/l16/wsucougz/stay_on_target.gif

worthy cook
05-23-2009, 01:43 PM
I heard from a friend that works there who said that CHK had the Orange County Chopper folks build them a natural gas chopper and they had all sorts of festivities on thursday and friday. Can anyone confirm this?

Stan Silliman
05-23-2009, 02:42 PM
The bonus was done to partially offset the $120 million margin call where Aubrey had bet heavily on Chesapeake and other oil stocks.

The group suing CHK has to be thinking about kicking Aubrey out. When stockholder groups do this kind of thing, that is usually their ultimate goal. I'm sure AM still controls the board.

Tom-S
05-23-2009, 05:38 PM
the bike looks cool - anyone have detailed pics?

digg / video display (http://digg.com/lbv.php?id=12848318&ord=1)

TStheThird
05-23-2009, 06:43 PM
They had their 20th Anniversary celebration this weekend. So yes, they had big parties and they unveiled an OCC Nat Gas Chopper.

MikeOKC
05-23-2009, 06:47 PM
The perils of those huge megathreads. I posted regarding this in that "CHK Empire Marches On" thread and it didn't get any notice. I'm glad this thread was started so this can be discussed apart from all the other CHK news.

Aubrey has caught hell recently for being the highest paid CEO in America, being bailed out of personal financial "problems" by his CHK directors of which he just gave massive pay increases (one is now paid 700 grand, for a few board meetings). Even if it's not, it sure looks like a quid pro quo. They bought his personal art collection, his personal wine collection among other things. Needless to say, stockholders are furious. Aubrey is also catching it from all sides for his board being stacked with personal friends that served up the highest one year compensation in this country's HISTORY.

Chesapeake Energy accused of giving CEO ‘personal’ bailout | Muckety.com - See the news (http://news.muckety.com/2009/04/29/chesapeake-energy-accused-of-giving-ceo-mcclendon-personal-bailout/14991)

As for the pay, his 112 million dollars set a new record. He's the highest paid CEO in history:

"Chesapeake Energy CEO Aubrey McClendon topped the AP list with a total package worth $112.5 million, even though his company’s stock price fell nearly 60 percent last year. Motorola co-CEO Sanjay Jha was second with $104.4 million. It was the first time since AP started analyzing CEO pay three years ago that anyone topped $100 million."
Top CEO raked in $112 million last year - U.S. business- msnbc.com (http://www.msnbc.msn.com/id/30501718/)

How can I forget this? Another thing prominently mentioned in these lawsuits is that CHK has also paid to be one of the "official sponsors" of the Oklahoma City Thunder (at several million dollars a year). This being the same Thunder that Aubrey McClendon has a personal ownership stake. How convenient.

Check this out, it's full of eye openers:
Chesapeake Energy (CHK) CEO Aubrey McClendon With New Shady Compensation Deal; I was Right in My Prediction (http://www.forexhound.com/article/Stocks/Stocks/Chesapeake_Energy_CHK_CEO_Aubrey_McClendon_With_Ne w_Shady_Compensation_Deal_I_was_Right_in_My_Predic tion/129880)

Shareholders are rightfully furious about all of this and If he's not careful, he's going to be another CEO doing a perp walk. He's walking the line pretty closely with some of this. As somebody on Fox Business News said "If you don't think the SEC is studying these lawsuits carefully and aren't going to be taking a hard look at this, you're seriously mistaken." I agree with the analyst because in these times, this kind of in your face personal payoff is the kind of greed that has brought down some once huge American institutions.

OKCTalker
05-26-2009, 02:51 PM
Pics of the CHK CNG motorcycle unveiling: Jeff Eager : photos : Chesapeake Energy OCC Chopper (http://www.smugmug.com/gallery/8337932_mpssM#546527816_3vuE6)

metro
05-26-2009, 03:09 PM
I heard from a friend that works there who said that CHK had the Orange County Chopper folks build them a natural gas chopper and they had all sorts of festivities on thursday and friday. Can anyone confirm this?

A friend of mine that works this also told me this this weekend. Said it was over $300,000 to build. Not sure if that part is true, but wouldn't be surprised.

bluedogok
05-26-2009, 05:32 PM
That's the typical, over-inflated OCC prices for TV. Put it in any auction and you would be lucky to get 30,000.

Midtowner
05-26-2009, 06:47 PM
The perils of those huge megathreads. I posted regarding this in that "CHK Empire Marches On" thread and it didn't get any notice. I'm glad this thread was started so this can be discussed apart from all the other CHK news.

Aubrey has caught hell recently for being the highest paid CEO in America, being bailed out of personal financial "problems" by his CHK directors of which he just gave massive pay increases (one is now paid 700 grand, for a few board meetings). Even if it's not, it sure looks like a quid pro quo. They bought his personal art collection, his personal wine collection among other things. Needless to say, stockholders are furious. Aubrey is also catching it from all sides for his board being stacked with personal friends that served up the highest one year compensation in this country's HISTORY.

Chesapeake Energy accused of giving CEO ‘personal’ bailout | Muckety.com - See the news (http://news.muckety.com/2009/04/29/chesapeake-energy-accused-of-giving-ceo-mcclendon-personal-bailout/14991)

As for the pay, his 112 million dollars set a new record. He's the highest paid CEO in history:

"Chesapeake Energy CEO Aubrey McClendon topped the AP list with a total package worth $112.5 million, even though his company’s stock price fell nearly 60 percent last year. Motorola co-CEO Sanjay Jha was second with $104.4 million. It was the first time since AP started analyzing CEO pay three years ago that anyone topped $100 million."
Top CEO raked in $112 million last year - U.S. business- msnbc.com (http://www.msnbc.msn.com/id/30501718/)

How can I forget this? Another thing prominently mentioned in these lawsuits is that CHK has also paid to be one of the "official sponsors" of the Oklahoma City Thunder (at several million dollars a year). This being the same Thunder that Aubrey McClendon has a personal ownership stake. How convenient.

Check this out, it's full of eye openers:
Chesapeake Energy (CHK) CEO Aubrey McClendon With New Shady Compensation Deal; I was Right in My Prediction (http://www.forexhound.com/article/Stocks/Stocks/Chesapeake_Energy_CHK_CEO_Aubrey_McClendon_With_Ne w_Shady_Compensation_Deal_I_was_Right_in_My_Predic tion/129880)

Shareholders are rightfully furious about all of this and If he's not careful, he's going to be another CEO doing a perp walk. He's walking the line pretty closely with some of this. As somebody on Fox Business News said "If you don't think the SEC is studying these lawsuits carefully and aren't going to be taking a hard look at this, you're seriously mistaken." I agree with the analyst because in these times, this kind of in your face personal payoff is the kind of greed that has brought down some once huge American institutions.

Kind of a classic case of a board dominated by non-independent board members who have completely failed in their duty to independently evaluate things and vote for what is in the best interest of the shareholders. I've seen the business judgment rule protect worse though (anyone remember Eisner's successor at Disney and the ridiculous compensation they awarded him?). Sometimes, I think the current system is less about corporate governance and more about people in positions of power looting the assets of the corporation.

Pete
05-26-2009, 07:09 PM
But remember, the government and legal system are far less tolerant post Enron, Worldcom, etc.


If I were a major shareholder (or represented their interests) I would demand a big shake-up of the board.

metro
06-17-2009, 01:34 PM
http://www.newsok.com/article/3378441/


Chesapeake CNG Chopper born to be wildly efficient
Oklahoman - Environment
BY DAVID ZIZZO
Published: June 17, 2009

Mark Harris grew up riding motorcycles. But neither he nor anyone else has ever seen anything like this before.

Featured Video (http://feeds.newsok.tv/services/player/bcpid4659235001?bctid=26505594001)

Natural gas chopper addressed

Jun 16 Taylor Shinn of Chesapeake Energy talks about the first-ever natural gas-powered chopper Chesapeake commissioned to commemorate its 20th anniversary.

Advertisement

The world’s first natural gas-powered chopper.

"This bike ... handles phenomenally compared to a chopper,” said Harris, fleet natural gas vehicle specialist for Chesapeake Energy Corp. The former professional dirt track racer is one of the few people who have ridden the blue and chrome environmentally friendly machine.

The beast with a carbon-fiber fuel storage cylinder — where a gas tank normally would be — was built for Chesapeake by Orange County Choppers. That temperamental but lovable group of custom bike fabricators builds theme bikes while about 9 million people watch on The Learning Channel’s "American Chopper.”


‘Paul Senior’ arrived
The Chesapeake bike, part of the company’s 20th anniversary celebration, was delivered a few weeks ago, when it was unveiled to employees at a rock concert-like rally headlined by "Paul Senior.” That’s Paul Teutul, the scowling mustachioed patriarch of the Newburgh, N.Y., custom bike shop who’s all bicepy and fierce on the outside but soft on the inside.
The idea for a Chesapeake chopper began with a technical staffer at Chesapeake, who e-mailed the suggestion to CEO Aubrey McClendon, said Taylor Shinn, manager of corporate development. After researching the idea and Orange County Choppers, Chesapeake officials approached the builders about creating a natural gas theme bike.

"They loved the idea,” Shinn said. OCC runs an environmentally efficient shop, "so the fact that they could build a muscle bike that runs on a clean fuel, they were ecstatic.”

A couple of conference call design meetings were held and two months later, the bike, dripping with references to Chesapeake and natural gas, was done. The fuel tank bears a bold Chesapeake logo and its custom-milled wheels sport the logo’s signature flame. The chrome grips are exact replicas of a 2-inch gas well drill bit. The bike’s rear fender has a cutout CNG (for compressed natural gas) back lit by blue lights.

Mechanically, the bike sports OCC’s usual 117-cubic-inch V-twin engine, six-speed transmission and belt drive. But its gas gauge reads in pounds per square inch rather than gallons. Instead of a carburetor, it has a regulator to step the pressure down from as high as 3,600 psi and a "fogger” to feed gas to the engine. Since natural gas is high octane, it "loves high compression,” as Harris said, and the cylinders run at 10.5 to 1 compression, delivering more power. And more decibels. Who needs a muffler?

"People hear you coming, that’s for sure,” Shinn said.

Spreading the word
Without mirrors, the bike isn’t street legal. It is destined for a pampered life anyway, being hauled by a natural gas truck to rallys, expos and events. It cost somewhere around $150,000, but with all the exposure it will provide in spreading the gospel of natural gas and Chesapeake’s commitment to it, Shinn figures it’s worth it.
"It may very well be the most inexpensive advertising we’ve ever had,” he said.

Pete
06-19-2009, 11:20 AM
Just heard from an employee at Chesapeake that they started laying off some people today, which took everyone by complete surprise.

Have no idea as to the number but it's definitely happening.

soonerguru
06-19-2009, 12:07 PM
That's rich. They lay people off and give the CEO an unearned bonus of $75 mil.

"Providing value?" That's how Aubrey sees himself?

Give me a break. His imperious behavior, which is richly rewarded by his band of cronies, is a sign of narcissism, not leadership. He actually seems to believe his own bull****.

OKCMallen
06-19-2009, 12:20 PM
Just heard from an employee at Chesapeake that they started laying off some people today, which took everyone by complete surprise.

Have no idea as to the number but it's definitely happening.

How solid is your source? Could they be mistaken? Haven't heard this breaking elsewhere....

ThePlainsman
06-19-2009, 12:39 PM
It is true. Straight from colleagues. They have definitely laid off some today.

ThePlainsman
06-19-2009, 12:41 PM
He is right. They have definitely already laid some off.

sroberts24
06-19-2009, 01:09 PM
i just heard from my friend that works there and my friend that work at Sandridge that both have opened up hiring

micesu
06-19-2009, 01:25 PM
A friend whose wife works there said around 150 people got laid off today. They were being escorted out.

OKCMallen
06-19-2009, 02:05 PM
OUInsider.com says CHK is laying off plenty today. Someone put the # at 400, but who knows.

OKCMallen
06-19-2009, 02:38 PM
Confirmed. I believe the estimate is probably 200-300 employees.

metro
06-19-2009, 02:44 PM
That's what was said about CHK layoffs a few months ago on this very website, and people "confirmed" and the layoffs were no where, I'm labeling this one rumor until I see it backed up.

OKCMallen
06-19-2009, 02:56 PM
Think whatever you want metro. I have about as solid of sources as you can imagine next to an official release by CHK. I can't attest to what the final number would be- those are personal estimates from information I've heard. But it's definitely occurring, and has been occurring over the course of today.

Pete
06-19-2009, 03:07 PM
That's what was said about CHK layoffs a few months ago on this very website, and people "confirmed" and the layoffs were no where

You didn't hear that from me.


Anyway, this is bad news for OKC and I hope it's not a sign of deeper troubles at Chesapeake.

ImTheDude
06-19-2009, 03:07 PM
That's what was said about CHK layoffs a few months ago on this very website, and people "confirmed" and the layoffs were no where, I'm labeling this one rumor until I see it backed up.It is most definitely happening.

KTB
06-19-2009, 03:15 PM
Heard the same from a top source. 300 is the number I heard. A lot in the land dept. but company wide.

LordGerald
06-19-2009, 03:19 PM
Think whatever you want metro. I have about as solid of sources as you can imagine next to an official release by CHK. I can't attest to what the final number would be- those are personal estimates from information I've heard. But it's definitely occurring, and has been occurring over the course of today.

metro is hurt because he didn't break the news, or wasn't able to post the story breaking the news.

Pete
06-19-2009, 03:41 PM
I know this is simplistic, but that $75 million bonus just paid to McClendon equals 300 employees being paid $83,000 a year for three years.


Business ethics and legal issues aside, that payout looks to be an on-going PR disaster for Chesapeake, McClendon and their board.

ThePlainsman
06-19-2009, 04:02 PM
I left two comments earlier. There are definitely layoffs taking place today. Started this morning. This isn't something they are going to send a press release out on. But is 100% for sure going on.

soonerguru
06-19-2009, 04:37 PM
Anyway, this is bad news for OKC and I hope it's not a sign of deeper troubles at Chesapeake.

But I thought they were doing great! They bought a shiny new helicopter and all...

soonerguru
06-19-2009, 04:38 PM
This is nowhere to be found on newsok.com.

metro
06-19-2009, 04:44 PM
metro is hurt because he didn't break the news, or wasn't able to post the story breaking the news.

Nope, just people have been rumoring layoffs at Chesapeake for more than 6 months, and so far it didn't happen like everyone was saying. I'll admit if someone beats me to the punch, I don't care about that, but the track record on THIS PARTICULAR ISSUE, has been FALSE thus far.

ThePlainsman
06-19-2009, 04:49 PM
Actually, back in November, they did layoff a ton of contract landmen and some folks associated with their Southern Oklahoma operations. The number landman affected was over 300. This is not conjecture. People in the industry were and are fully aware of it. Today, the rumors are heavy hits in land and geology, but I can confirm other depts taking limited hits as well. Again, this isn't conjecture or even rumor. The only unknown is a definitive total. It's unfortunate, but probably unavoidable. Cheap energy has costs. And yeh folks, it's cheap.

icecold
06-19-2009, 07:13 PM
But I thought they were doing great! They bought a shiny new helicopter and all...

Really? What kind? Any pics?

naturalgasok
06-19-2009, 08:26 PM
It's true. I work for CHK. Not sure how many laid off yet, but at least three were let go in my department. I'm sure the media will pick it up soon. Supposedly, the layoffs were "based on performance", but the people I know who got canned were productive employees .

naturalgasok
06-19-2009, 08:29 PM
It's true. I work for CHK. They let go at least three people in my department. Supposedly, the layoffs were "based on performance", but the people that I know who were laid off were productive employees. I'm sure the media will pick it up soon.

UrJudge
06-19-2009, 11:14 PM
KOKH FOX 25 :: Top Stories (http://www.okcfox.com/newsroom/top_stories/videos/kokh_vid_2581.shtml)

gmwise
06-20-2009, 01:04 AM
helicopter? maybe you mean the "custom made motorcycle"
I had wondered not so much if.. but instead when, just because theres rumors hadn't been realized doesn't make it unlikely there is not going to be layoffs.
I hope the best for the victims of these lay offs brought about the Eron/Tyco/WorldCom business model that is in residence on Western.
AM as well as TW contributed to an "impressive" growth,but at what cost?
My past experiences leads me to this, you cant grow that quick without getting dirty.

naturalgasok
06-20-2009, 11:10 AM
The rumors are true. I work for CHK, and they definitely laid off several yesterday, although I'm not sure exactly how many were let go company-wide. Supposedly, the layoffs were "performance based", but the people I know who got let go were productive employees.

I'm sure the media will pick it up after the weekend.

soonerguru
06-20-2009, 03:42 PM
I think the issue is that Aubrey McLendon is the highest paid CEO in the nation. Does anyone actually believe his leadership merited such pay, particularly when the company lost 60 percent of its value? If by "creating value," McLendon means stewarding over the losing of 60 percent of his company's value, then his definition of "value" is quite different than anyone else has.

For resources, here's the AP article about his obscene compensation package.


Top CEO raked in $112 million last year - U.S. business- msnbc.com (http://www.msnbc.msn.com/id/30501718/)

TStheThird
06-21-2009, 09:38 AM
The number is 200 and it did happen.

Oil Capital
06-21-2009, 10:48 AM
The number is 200 and it did happen.

Would that be 200 people laid off or 200 positions eliminated?

Would that number be 200 in OKC or 200 company-wide?

Captain Foo
06-21-2009, 11:09 AM
I can confirm the layoff. I know many people at CHK, including some of those who got canned.

Basically, some HR goon shows up at your door. He/she tells you to go to a conference room immediately. In the conf room are more goons who break the news to you. The HR goon then takes you back to your office to watch while you pack up. You are then escorted out of the building. One CHKer told me that security guards were stationed in the lobby of each building just in case. Several others said that some sort of severance or "early retirement" package was given.

The news spread by word of mouth between the people who did not get laid off. Some got a prepared statement from their supervisors Friday afternoon, but others got no word at all. Apparently there has not yet been any official announcement from the executives.

I've heard numbers ranging from 200 to 400.

The layoff comes just before the mid-year compensation review, where people get raises, cash bonuses, and stock bonuses.

lasomeday
06-21-2009, 11:31 AM
Metro! You need to wake up. Chesapeake manipulates the media. They never announce layoffs. It is not a part of their "image". Image is everything to Aubrey McClendon and the fact that he is no longer a billionaire kills him. He is manipulating Chesapeake every way possible to get back to being a billionaire. He would layoff 400 people if it meant that he could be a billionaire next year. Chesepeake will never announce layoffs, that is their style. They manipulate their employees, they try to manipulate the price of gas, the value of their stock, and industry analysts. I have met with analysts in NYC that have said that coworkers were personally threatened by Aubrey when they published the issues with investing in CHK. Their debt has always been extremely high making the company volatile to price swings in natural gas and oil.

onthestrip
06-21-2009, 01:54 PM
...They manipulate their employees...

Funny you say that because I have a friend who definitely has the attitude that CHK or Aubrey can do no wrong. About the firings, he said that they had to trim some fat, and layoff employees that were surfing the internet too much and taking long lunches. I just laughed.

I do love the post above that breaks down the amount of people that could be employed with Aubreys bonus. If I was one of the empoyees laid off, Id be furious about his bonus.

soonerguru
06-21-2009, 03:36 PM
Steve,

Has the Oklahoman done any reporting on this layoff? Is Chesapeake "off limits?"

Steve
06-21-2009, 05:04 PM
SoonerGuru, I think that's a question that needs to be addressed to the newspaper's management. And if you're not happy with the coverage that you are or are not seeing, I've been told readers are always encouraged to contact the paper's management and provide feedback.

soonerguru
06-21-2009, 06:02 PM
SoonerGuru, I think that's a question that needs to be addressed to the newspaper's management. And if you're not happy with the coverage that you are or are not seeing, I've been told readers are always encouraged to contact the paper's management and provide feedback.

Steve,

You are a business reporter. Is this newsworthy in your mind?

Luke
06-21-2009, 06:17 PM
Who cares what he makes? And why?

Steve
06-21-2009, 07:29 PM
Are layoffs at a major hometown employer newsworthy? Yes.