Chesapeake Gets Pistol-Whipping From Shareholders

By Robert Cyran and Christopher Swann

Chesapeake Energy has gotten a pistol-whipping from shareholders. The besieged U.S. gas giant’s owners voted overwhelmingly against directors who were up for re-election and the board’s executive pay plan, while favoring a slew of investor proposals to improve Chesapeake’s governance. It’s hard to see how boss Aubrey McClendon can keep running this circus.

McClendon tried hard to placate investors ahead of the annual meeting on Friday with a series of half-measures. Chesapeake agreed to ditch four loyalists from the nine-strong board. Newcomers will be named by the two largest shareholders, including Carl Icahn, and will be far harder to push around.

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