Oklahoma City-based Chesapeake Energy has eliminated some of its compensation plan for its members of the board of directors, but the company did not give an explanation of why it initiated the move.
Revelation came in a recent filing the company made with the U.S. Securities Exchange Commission. It stated that the Board of Directors of Chesapeake Energy, in a January 19 decision approved the termination of its Chesapeake Energy Corporation Deferred Compensation Plan and its Chesapeake Energy Corporation Deferred Compensation Plan for Non-Employee Directors.
The filing, according to the SEC was made under the heading, “Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.”
“The terminations were made in accordance with the terms and conditions of the DCP and Director DCP, respectively. As soon as administratively practicable following the effective date of the terminations, the DCP and the Director DCP shall commence distributing amounts previously deferred to the respective plan participants,” stated the filing.
The SEC filing was made by James R. Webb, Executive Vice President and General Counsel and Corporate Secretary.
Most deferred compensation plans fall under the Employee Retirement Income Security Act and includes 401(k) and 403(b) plans and are held in a trust account.
The filing with the SEC came the same day that other Chesapeake filings indicated that three company executives disposed or sold a total combined 395,000 shares in the company.
Dominic J. Dell’Osso Junior disposed of 179,322 shares valued each at $0.5385 for a sale that netted him $96,564.89. He is the company’s Executive Vice President and Chief Financial Officer and still has ownership of 2,204,409 shares in Chesapeake.
James R. Webb, Chesapeake’s Executive Vice President, General Counsel and Corporate Secretary disposed of 145,869 shares, each with a value of $0.5385. The disposal totaled $78,550.45 for Webb who still has 1,600,838 shares in the company.
William M. Buergler, Senior Vice President and Chief Accounting Officer disposed of 69,745 shares, each valued at $0.5385 which netted him $37,557.68. Even with the sale, Buergler still retains director ownership of 498,887 shares as well as another 70,681 in trust.
Source: SEC filings