By Ben Lefebvre Of DOW JONES NEWSWIRES HOUSTON -(Dow Jones)- Chesapeake Energy Corp. (CHK) Friday said it will cut compensation for its board members by 20%, the latest move by the beleaguered natural gas heavyweight to quell criticism over its corporate governance. A series of revelations detailing possible conflict-of-interest issues involving Chief Executive Aubrey McClendon has brought a fresh wave of criticism against Chesapeake and its board. Doubts about Chesapeake's governance, complicated finances and natural gas prices near historic lows have cost Chesapeake billions of dollars in market value. Annual pay for board members will be cut immediately to $100,000 cash and $250,000 in company shares, the company said. That will slash pay by nearly half for one board member who had received total compensation higher than $600,000 a year. "This reduces director compensation to a level at or below the average director compensation for the company's peers," Chesapeake said. Chesapeake's search for an outside board chairman "is progressing," the company said. The board said it was stripping McClendon of his position as board chairman after a series of revelations detailing his taking loans from companies doing business with the natural gas producer. -By Ben Lefebvre, Dow Jones Newswires; 713-547-9201; ben.lefebvre@dowjones.com; Twitter: @bjlefebvre Order free Annual Report for Chesapeake Energy Corp. Visit http://djnewswires.ar.wilink.com/?link=CHK or call 1-888-301-0513 Order free Annual Report for Chesapeake Energy Corp. Visit http://djnweurope.ar.wilink.com/?ticker=US1651671075 or call +44 (0)208 391 6028
