Photo: The Lost Ogle
Chesapeake announced this morning that four board members will resign , bowing to pressure from the company’s two largest shareholders. Aubrey McClendon will stay on as CEO, the company said, while four new independent board members would be appointed.
“Following extensive discussions with its two largest shareholders, Southeastern Asset Management and Carl C. Icahn and his affiliated entities, who own, respectively, approximately 13.6% and 7.6% of the Company’s common stock, Chesapeake has agreed to a plan to reconstitute its Board of Directors,” the company said.
Icahn himself could become one of the new board members.
Last month, shareholder activist Carl Icahn purchased a 7.56% stake in the embattled energy company and wrote an impassioned letter calling for greater independence on the company’s board.
Chesapeake shares were up 3.5% in pre-market trading Monday.
“We appreciate the Board’s willingness to listen to shareholders and to respond appropriately,” Icahn said in a statement. “Under Aubrey’s leadership, Chesapeake has assembled great assets and I am confident I can help the Company create significant shareholder value from these assets. We enjoyed a very good relationship when I acquired almost 6% of the Company’s stock in late 2010 and I look forward to a similarly constructive relationship now.”