It’s only getting worse for Chesapeake Energy Corp and its spend-happy CEO Aubrey McClendon. A Reuters report published on Thursday exposed McClendon’s long and brazen use of company money for personal business — including family vacations to Amsterdam and Paris, Mrs. McClendon’s trip with nine female friends to Bermuda, and financial spillover from McClendon’s stake in the NBA team the Oklahoma City Thunder. McClendon even devoted a unit of Chesapeake, called AKM Operations, to managing his personal business.
That’s AKM, as in, Aubrey K. McClendon. This was all detailed in internal company documents that haven’t seen the light of day until now. On Friday, a day after the report was published, a long-planned meeting of Chesapeake shareholders took place in Oklahoma City. Two members of the board of directors were voted out. Some shareholders are even suing McClendon for the way he’s been handling the company.
Reporter John Shiffman co-wrote the Reuters story “The Lavish and Leveraged Life of Aubrey McClendon." David Dreman is chairman of Dreman Value Management and holds about one million Chesapeake shares.