Photo: The Lost Ogle
Chesapeake CEO Aubrey McClendon had his employment contracts rewritten numerous times to reflect an apparently shifting stance regarding McClendon’s personal commodities trading, Reuters’ Joshua Schneyer and Jeanine Prezioso report today.The pair report that his contracts, dating back to 1997, were revised numerous times, for a variety of reasons.
In July 2001, they write, a ban imposed on McClendon’s “outside activities” that prevented him from serving as an officer of any independent enterprise was relaxed.
“The new contract said he could become a ‘general partner or member of any corporation, partnership, company or firm,’ so long as the activity was a ‘passive investment’ that involved ‘minimal’ time. It barred him from any role in a ‘public’ company,’ ” they report.
From 2004 to 2008, Reuters has previously reported, McClendon ran a hedge fund called Heritage Management Company LLC. The fund allowed McClendon to make personal natural gas and oil trades — the same commodities that Chesapeake produces.
In July 2005, shortly after Heritage was established, the contract was again revised, the pair write.
“The new contract said he could not “engage in activities which require such substantial services” that McClendon would be “unable to perform the duties assigned to the Executive in accordance with this Agreement.” It also said he could not “serve as an officer or director of any publicly held entity” but made no other mention of external management roles,” they report.