Chesapeake executives agree to compensation cuts

 Executives at Chesapeake Energy are taking big pay cuts in light of the oil crisis and the coronavirus pandemic and their combined impact on the oil and gas company.

A filing with the Securities and Exchange Commission stated that the companies two top officers, President and CEO Robert Lawler and Executive Vice President and CFO Domenic J. Dell’Osso agreed to a 34% cut in compensation “in light of the unprecedented market volatility and historic decline in commodity prices. “

They are among the four highest paid executives in the company and two others took cuts as well including a 33% reduction for Frank J. Patterson who is Executive Vice President of Exploration and Production and a 28% cut for James R. Webb, Executive Vice President-General Counsel and Corporate Secretary.

The Board of Directors stated that the company’s 21 Senior executives and named executive officers will receive approximately $25 million.

“Our named executive officers’ target compensation will be earned 50% based on their continued employment for a period of up to 12 months and 50% based on achieving certain specified incentive metrics,” stated the SEC filing.

The board also took the action of converting the company’s annual incentive plan into cash retention payments on a quarterly basis for employees in order to continue with the existing workforce.

“The Company and the Board believe the revised compensation program’s emphasis on retention is essential to keep employees engaged and focused on the tasks necessary to achieve the Company’s short- and long-term goals,” according to the filing.

The company’s non-employee directors also took a 15% cut in their compensation.

Click here to view SEC filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:  May 8, 2020