OKLAHOMA CITY: Chesapeake Energy Corporation shareholders delivered a sweeping rebuke of the company's board yesterday, withholding support for two members up for re-election in the wake of a governance crisis and poor financial performance at the US oil and gas company.
The company said the two directors - V Burns Hargis, president of Oklahoma State University, and Richard Davidson, a former chief executive officer of Union Pacific Corp - had tendered their resignations from the board after winning the backing of just slightly more than a quarter of the shareholder votes cast.
"The vote is fundamentally a referendum on the entire board," Michael Garland, head of corporate governance for the New York City comptroller, told the annual meeting of investors.
The shareholders also soundly rejected the company's executive officer compensation programme, with only 20 per cent backing the measure. However, that vote was only an advisory measure and is not binding.