Reuters: Chesapeake CEO Losing Chairmanship, Keeping Powers
Aubrey McClendon might be losing his title as chairman, but the Chesapeake Energy CEO will get to keep powers he had as leader of the board, according to a change in the company’s bylaws.
Following the board’s move, taken after the annual shareholders’ meeting on Friday, McClendon and the still-unnamed chairman each hold the power to call special meetings of shareholders and the board of directors, Reuters’ Anna Driver reports.
A corporate governance researcher tells Reuters it makes sense for the CEO to be able to call a board meeting, but the board or its chairman usually has the authority to call special shareholder meetings:
“But I don’t understand why the CEO, who is management, should have the right to call a special meeting of shareholders,” said Paul Hodgson of GMI Ratings.
Two board members, Burns Hargis and Richardson Davidson, resigned last week after shareholders rejected their re-election. Board member and former U.S. Senator Don Nickles says directors were “getting close” to naming a new independent chairman, which the company said will be announced on or before June 22.