Forbes: McClendon Raped and Pillaged Chesapeake Over Past Few Years
|Aubrey McClendon accused|
of selfishly looting Chesapeake
In 2008 Aubrey was forced to sell almost all of his then very relevant CHK position of 33 million shares to meet a margin call. His ownership at its peak was briefly worth $2.2 billion versus $35 million now. This means Aubrey borrowed a whole bunch of money using his stock as collateral probably to buy boats and ranches and more CHK stock, so when the stock price plummeted by 70% or more like it did, the bankers just sell you out to pay off your loans. So Aubrey had a change in philosophy. Since he now had lost 95% of his CHK holdings he went from comporting himself like an owner to behaving like a pirate; the tools of that trade being rape, pillage, and plunder. Aubrey began taking absurd salaries and bonuses and ratcheting up his participation in the FWPP (Founders Well Participation Program). In 2010 and 2011 Aubrey had aggregate executive compensation of $57 million. Right after Aubrey’s 2008 debacle and despite a 60% drop in earnings from the previous year, the compliant board poured a palliative on Aubrey’s wounds which took the form of a $75 million bonus. Also, in the eighteen months ending in 2011 Aubrey skimmed $108 million from the FWPP.Read the rest of the article here. It's the most scathing denunciation of McClendon that I've read from a mainstream outlet in the wake of the announcement of his April 1 retirement.
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