April 30 (Reuters) – Chesapeake Energy Corp said on
Monday the Internal Revenue Service was reviewing issues related
to the company’s perk that grants its chief executive officer a
stake in thousands of wells the company drills, according to a
regulatory filing.
In a filing with the U.S. Securities and Exchange
Commission, Chesapeake disclosed “the IRS is reviewing certain
issues” related to its Founders Well Participation Program
(FWPP) granting CEO Aubrey McClendon the right to take a 2.5
percent interest in every well the company drills.
Reuters reported on April 18 that McClendon has mortgaged
his interest in those wells for at least $1.1 billion, a fact
previously undisclosed to shareholders.
Since then, the program has come under the scrutiny of the
U.S. Securities and Exchange Commission and the company’s board
of directors said they would negotiate an early termination of
the plan.
Chesapeake, based in Oklahoma City, Oklahoma, said the IRS
review relates to its 2008 and 2009 tax returns and the company
believes “that resolution of these issues will not have a
material impact on the company,” the filing said.
