The headline in Forbes reads like it was written by those 99-percenters of Occupy Wall Street: “Aubrey McClendon Must Be Stopped.” The CEO of Chesapeake Energy Corp. has spent the past three years becoming the poster boy for what looks to many vocal critics as corporate greed.
“What right has Aubrey to effectively ‘skim’ 2.5% off the revenue of this company? I won’t hold you in suspense….NONE,” writes Houston investor Richard Finger in an open letter. He sarcastically points out how McClendon has arranged it to personally get 2.5% profit from each of thousands of natural gas wells his corporation is drilling. Because McClendon must put up none of the cost, Finger points out his obligations as chief executive are conflicted by the fact the more Chesapeake spends trying to hit wells, the more McClendon might earn.
McClendon had received a loan of nearly $1 billion from EIG Global Energy partners.” an affiliate of Chesapeake after getting one for $375 million earlier that year.
“The whole arrangement is simply a pitiful example of corrupt corporate governance,” Finger minces no words.