8-KLeadership ChangesExhibits & Filings

EXPAND ENERGY Corp 8-K Report, Executive Changes (Dec 19, 2007)

Filed December 19, 2007For Securities:EXEEXEELEXEEWEXEEZ

Summary

This Form 8-K filing by Chesapeake Energy Corporation (EXE) on December 19, 2007, primarily details changes in executive compensation and an amendment to the employment agreement for its Chairman and CEO, Aubrey K. McClendon. The Compensation Committee approved new annual base salaries and cash bonuses for named executive officers, effective January 1, 2008, reflecting adjustments to their compensation packages. The most significant update concerns Mr. McClendon's employment agreement. An amendment to this agreement modifies the reimbursement terms for employees providing personal and business support services to him. Previously, he reimbursed 100% of salaries and bonuses. The amended agreement broadens this to include reimbursements for retirement and deferred compensation contributions, insurance premiums, and Chesapeake's portion of payroll taxes for these employees. Additionally, a new provision requires reimbursement for indirect costs associated with these employees, calculated as a percentage of total reimbursable compensation, as determined by the Compensation Committee and approved by Mr. McClendon.

Key Highlights

  • 1Chesapeake Energy's Compensation Committee set new annual base salaries and cash bonuses for its named executive officers, effective January 1, 2008.
  • 2Aubrey K. McClendon, Chairman and CEO, will receive a base salary of $975,000 and a cash bonus of $950,000.
  • 3The employment agreement for Aubrey K. McClendon was amended and restated.
  • 4The amendment expands Mr. McClendon's reimbursement obligations for employees supporting his personal and business activities.
  • 5Reimbursement now includes not only salaries and bonuses but also retirement contributions, deferred compensation, insurance premiums, and employer payroll taxes for these support staff.
  • 6A new provision introduces reimbursement for indirect costs related to these employees, calculated by a percentage of total reimbursable compensation.
  • 7The amended employment agreement with Mr. McClendon is filed as an exhibit to this 8-K.

Frequently Asked Questions

The main purpose of this 8-K filing is to report the updated executive compensation for Chesapeake Energy's named executive officers, effective January 1, 2008, and to announce an amendment to the employment agreement of its Chairman and CEO, Aubrey K. McClendon.

Mr. McClendon's reimbursement responsibility has expanded. Previously, he reimbursed 100% of salaries and bonuses for employees providing support services. Now, he must also reimburse for retirement contributions, deferred compensation, insurance premiums, employer payroll taxes, and indirect costs associated with these employees.

Effective January 1, 2008, Mr. McClendon's annual base salary is set at $975,000 and his cash bonus is set at $950,000.

Yes, the filing also details adjusted annual base salaries and cash bonuses for other named executive officers, including Marcus C. Rowland, Steven C. Dixon, Douglas J. Jacobson, and J. Mark Lester.