Documents Show Chesapeake's (CHK) McClendon Led Amazingly Rich (and Expensive) Life
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Price: $21.66 --0%
Overall Analyst Rating:
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Dividend Yield: 1.7%
EPS Growth %: +66.7%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 1.7%
EPS Growth %: +66.7%
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Chesapeake's (NYSE: CHK) CEO Aubrey McClendon might be in way over his head on this one.
Data obtained by Reuters Thursday -- via media interviews, internal documents, and public records -- show McClendon was taking advantage of Chesapeake and its shareholders over the years due to increased personal liberties and costs associated with those interests.
Reuters said there was actually a team (NOT Seal Team Six) which handled McClendon's personal affairs like accounting and engineering services. In addition, documents revealed use of the company's corporate jet to ferry friends and family members to holiday destinations. (Note to self: Add McClendon to "friends" circle in Google+.)
Documents from 2010 showed employees spent $15,000 working specifically for McClendon's personal projects at a cost of $3 million. In addition, 2011 showed costs of $3.2 million for McClendon's personal use, with McClendon reimbursing the company just $250,000 (which is required by his contract).
These sort of expenses have added up to an SEC inquiry. According to reports on Tuesday, McClendon tapped a former SEC lawyer to advise him through the process.
We just hope the lawyer fees don't also end up on his generous Chesapeake tab.
Shares are up 1.3 percent ahead of the opening bell Thursday.
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Data obtained by Reuters Thursday -- via media interviews, internal documents, and public records -- show McClendon was taking advantage of Chesapeake and its shareholders over the years due to increased personal liberties and costs associated with those interests.
Reuters said there was actually a team (NOT Seal Team Six) which handled McClendon's personal affairs like accounting and engineering services. In addition, documents revealed use of the company's corporate jet to ferry friends and family members to holiday destinations. (Note to self: Add McClendon to "friends" circle in Google+.)
Documents from 2010 showed employees spent $15,000 working specifically for McClendon's personal projects at a cost of $3 million. In addition, 2011 showed costs of $3.2 million for McClendon's personal use, with McClendon reimbursing the company just $250,000 (which is required by his contract).
These sort of expenses have added up to an SEC inquiry. According to reports on Tuesday, McClendon tapped a former SEC lawyer to advise him through the process.
We just hope the lawyer fees don't also end up on his generous Chesapeake tab.
Shares are up 1.3 percent ahead of the opening bell Thursday.
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