Chesapeake Business Practices

[MikeOKC]

How did this get missed? I haven't seen anything on the forum. Not to mention, The Oklahoman found it unworthy of news. And here we are just 48 hours before the annual meeting.

ISS advises against McClendon for board

Influential proxy advisory firm ISS has recommended Chesapeake Energy shareholders oppose chief executive Aubrey McClendon's re-nomination to the board of directors.

The group cited an unresponsiveness on McClendon’s part to investors and compensation issues, Reuters reported.

ISS also urges shareholders to vote against the reelection of former US Senator Don Nickles, who is chairman of the governance committee of the US natural gas company.

"A pay-for-performance disconnect has been identified at this company," ISS said in a 16 May report. "The company does not use any performance-linked incentive, choosing to rely instead on the discretion of the compensation committee."

Chief executive Aubrey McClendon's pay rose 13.4% last year, while one-year total shareholder return was only 1.4%, below the peer median of 35%, ISS said.

McClendon also receives excessive perks, the proxy advisory firm wrote.

ISS also recommended holders opposed the company's executive compensation plan, the filing said.

In a letter to shareholders, Chesapeake wrote that ISS's reliance on short-term stock performance should instead be focused on the long term.

The company also told investors that its board takes feedback from corporate governance specialists and big shareholders, factors that ISS did not take into account.

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He's treated like a God here in Oklahoma City, but McClendon deserves the boot from the board. And he's not the only one, that board is loaded with McClendon lackeys. His compensation package is so far askew from reality that it should be derided by all that care about the future of CHK. The big question - will stockholders or the SEC bring down Aubrey McClendon first? CHK is rogue and out of control.

http://www.upstreamonline.com/live/article258872.ece