Friday, June 8, 2012

Shareholders revolt — Chesapeake and Walmart targeted

Posted By on Fri, Jun 8, 2012 at 6:32 AM

The New York Times examines shareholder unhappiness with high-handed corporate management and notes some cases where stockholders fight back.

Most prominently mentioned is Chesapeake Energy. Its shareholders are meeting today amid a forced ouster of some board members who allowed sweetheart dealing by CEO Aubrey McClendon, whose riches include big shares of the company's gas wells in Arkansas's Fayettteville shale. (In other words, huge chunks of the accounted benefits of the shale are going into a bank in Aubrey McClendon's name.)

Depending on the company, shareholders can only go so far. At Walmart, for example, the Waltons control enough shares to defeat any corporate governance reform measures. But, nonetheless, they've been heard.

Wal-Mart, too, has faced intense scrutiny from prominent shareholders. In the wake of a New York Times article exposing bribery in Wal-Mart’s Mexican arm, the nation’s second largest public pension fund, the California State Teachers’ Retirement System, sued the company and voted against all of its board members. The pension fund railed against “a breakdown of corporate governance.”

While the skirmish has yet to yield changes at Wal-Mart, other embattled companies are making concessions. Chesapeake this week agreed to eject four of its nine board members. The company will replace them with board members handpicked by its two largest shareholders, Southeastern Asset Management and Carl C. Icahn.

UPDATE: More from today on Chesapeake. Selling assets.

Tags: , ,

Favorite

Speaking of...

Comments (6)

Showing 1-6 of 6

Add a comment

 
Subscribe to this thread:
Showing 1-6 of 6

Add a comment

More by Max Brantley

  • Arkansas Supreme Court denies rehearing in death penalty challenge, but delays mandate

    The Arkansas Supreme Court today refused to rehear the case denying Death Row inmates information about drugs used by the state in the lethal injection process.
    • Jul 21, 2016
  • Welspun layoffs: Another example of corporate welfare folly

    Layoffs at the Welspun pipe plant in Little Rock are a reminder of the folly of corporate welfare and the inability of Arkansas to separate itself from global economic forces. See the Fayetteville shale. And keep a watchful eye on that Sun Paper pulp mill proposed near Arkadelphia.
    • Jul 21, 2016
  • Hamburg bank manager gets 21 months for theft

    Melinda Gwin, 49, of Hamburg has been sentenced to 21 months in federal prison and ordered to repay $210,875 stolen from the First National Bank of Crossett. She was sentenced in El Dorado federal court, according to a Justice Department news release.
    • Jul 21, 2016
  • More »

Readers also liked…

  • Oaklawn admission to be free; no racing passes for legislators this year

    Oaklawn Park has answered the question about whether legislators will continue to get hundreds of dollars worth of free passes to thoroughbred races after adoption of Issue 3, which bans most gifts of value by lobbyists. It's not going to charge admission to anyone this year. Now what about Razorback football tickets?
    • Dec 10, 2014
  • The Thursday open line: Plus Garth Brooks

    Here's an open line and video headlines. Garth Brooks said hello to Little Rock before his Verizon shows. Sen. Jason Rapert horned in on the event to grab some attention for himself.
    • Dec 11, 2014
  • The Duggar clan provides big boost, unintentionally, for gay kids

    Still more good news for Lucie's Place, the small Little Rock nonprofit that works to help homeless LGBT youths. It's added a $10,000 grant to $30,000 raised in a symbolic response to the Duggar family's support for discrimination against gay people in Fayetteville.
    • Dec 18, 2014

Most Shared

  • Tackling autism, child by child

    An Arkansas Children's Hospital doctor is testing a new drug that targets one of a host of ailments the highly individual disorder can cause.
  • Tom Cotton flat on his big night

    Sen. Tom Cotton's big Republican National Convention speech was nothing to write home about.
  • 1957 all over again

    Last week, the State Board of Education voted to ignore federal courts and allow school district transfers that will encourage segregation.
  • Death penalty lives

    Barely clinging to its flagging life, the death penalty got a merciful reprieve last month from the unlikeliest quarter, the Arkansas Supreme Court.
  • Drinking culture

    Here we go again. At the rate these campus sexual abuse sagas are making news, it's reasonable to ask what college administrators can possibly be thinking about.

Most Viewed

Most Recent Comments

  • Re: As the campaign turns...

    • YDD....I agree with everything you said.

    • on July 23, 2016
  • Re: As the campaign turns...

    • Trump business deals with Russia ... interesting.. Wonder if he got in on the uranium…

    • on July 23, 2016
  • Re: As the campaign turns...

    • The Politico write up on how the VP candidates were vetted is fantastic. Thanks for…

    • on July 23, 2016

Blogroll

 

© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation