Doug Lawler is leaving as CEO at Oklahoma City’s Chesapeake Energy Corporation and taking a chunk of change with him according to a late Tuesday filing the company made with the Securities Exchange Commission.
The company announced his departure on Tuesday, saying it will be effective April 30, 2021. The announcement did not indicate why Lawler is leaving but Chesapeake’s Board of Directors and Interim Chief Executive Officer Mike Wichterich made it appear the departure is on good terms.
“On behalf of the Board of Directors, Chesapeake’s employees and its shareholders, I would like to thank Doug for the vision and leadership he provided for the past 8 years,” said Wichterich in a released statement
“He guided Chesapeake through a difficult period, repositioned Chesapeake’s portfolio of assets, and built a corporate culture which will serve as a platform for future success. I firmly believe that the investment thesis supporting Chesapeake is compelling, and my confidence in the renewed strength of the company continues to grow.”
However, a filing made with the SEC later in the day had a different approach regarding Lawler’s departure. It stated that the Board of Directors and Lawler “reached an agreement that Mr. Lawler will no longer serve in his position” as President, CEO and director on the board.
The SEC filing also indicated the board treated Lawler’s departure “as a termination without “cause” pursuant to his employment agreement. The company said that under the severance agreement, Lawler will cease to be President and CEO effective the end of April 2021.
“Mr. Lawler is entitled to receive the severance benefits set forth in the Employment Agreement and memorialized in the Severance Agreement, subject to the satisfaction of the release conditions contained therein,” stated the company filing with the SEC.
The severance agreement revealed that Lawler’s base pay at Chesapeake was $1,345,500 and that his total severance payment will be $6,420,032.50 to be paid within 30 days after the termination date.
Lawler had been CEO since June 2013. Before joining Chesapeake, Mr. Lawler served as Senior Vice President of International and Deepwater Operations at Anadarko Petroleum Corporation and as a member of Anadarko’s Executive Committee from July 2012 to June 2013.
Lawler began his career with Kerr-McGee Corporation in 1988 and joined Anadarko following its acquisition of Kerr-McGee in August 2006.
Mr. Lawler graduated from the Colorado School of Mines in 1988 and from Rice University in 2002.
Wichterich will be the Interim leader while the Board of Directors carries out a search for a new Chief Executive Officer, a move that won’t be completed for months.
Wichterich intends to continue in his role as Chair of the Board of Directors following the appointment of Chesapeake’s new Chief Executive Officer. During the period that Wichterich is both the Chair of the Board of Directors and Interim Chief Executive Officer, Matt Gallagher, the Chair of Chesapeake’s Nominating and Governance Committee, will serve as Lead Independent Director.
The SEC filing indicated that pursuant to the Interim CEO agreement, Wichterich will receive a salary at a rate of $61,250 per month through July 31, 2021 and $204,583.33 per month afterward.
Wichterich has served as the non-executive Chairman of Chesapeake’s Board of Directors since February 2021. Wichterich is Founder and Chief Executive Officer of Three Rivers Operating Company LLC, a private exploration and production company with a focus in the Permian Basin.
Prior to founding Three Rivers Operating, Mr. Wichterich served as the Chief Financial Officer of Texas American Resources, New Braunfels Utilities, and Mariner Energy (NYSE: ME).