Aubrey McClendon, the embattled chief executive of Chesapeake Energy, will relinquish his title as chairman of the board. That followed an announcement by Chesapeake that McClendon agreed to negotiate an early termination of the controversial Founder Well Participation Program which allowed him to take personal stakes in wells drilled by the company.
The incentive program came under fire after news that McClendon took out loans worth over $1 billion against his personal stake in the company’s wells, raising concerns about a conflict of interest. McClendon agreed to end the program in June 2014, more than a year ahead of schedule. He will receive no compensation in connection with the early termination, Chesapeake said in a statement.
The board is also reviewing the financial deals between McClendon and “any third party that has had or may have a relationship” with Chesapeake. McClendon said he will have more time to focus on implementing the company’s strategy as chief executive.