CEO forced to sell all his stock

[cisco]

Margin calls as stock price drops.

Chesapeake Energy Corporation Discloses CEO's Involuntary Sale of Common Stock
Friday October 10, 4:56 pm ET


OKLAHOMA CITY--(BUSINESS WIRE)--Chesapeake Energy Corporation (NYSE:CHK - News) today disclosed that its Chief Executive Officer, Aubrey K. McClendon, involuntarily sold substantially all of his shares of Chesapeake common stock over the past three days in order to meet margin loan calls.

Mr. McClendon commented, ?I am very disappointed to have been required to sell substantially all of my shares of Chesapeake. These involuntary and unexpected sales were precipitated by the extraordinary circumstances of the worldwide financial crisis. In no way do these sales reflect my view of the company?s financial position or my view of Chesapeake?s future performance potential. I have been the company?s largest individual shareholder for the past three years and frequently purchased additional shares of stock on margin as an expression of my complete confidence in the value of the company?s strategy and assets. My confidence in Chesapeake remains undiminished, and I look forward to rebuilding my ownership position in the company in the months and years ahead.?

 

[Bob Stoops]

Aubrey McLendon is one of the most generous CEO's that you will ever meet. The amount of money that Chesapeake and he personally donate to charities throught Oklahoma and specifivally Oklahoma City is tremendous. While many people think of these big company CEO's as greedy fools, I can assure you that this is not the case. This is extremely unfortunate and a big blow to the people of Oklahoma and Oklahoma City who have benefited greatly from Aubrey's generosity.

 

[smurphy]

The fact that he was facing margin calls means he was a reckless leader.

Unfortunately that seams to be what everyone was doing. Too much pressure to make unrealistic profits.

 

[MadJack]

ENOUGH! :mj07:

THAT'S ENOUGH!!

 

[smurphy]

ENOUGH! :mj07:

THAT'S ENOUGH!!

As soon as the Cards game is over.

 

[MadJack]

i'll make one of YOU so just remember

:kiss:

 

[Bob Stoops]

The fact that he was facing margin calls means he was a reckless leader.

This was his personal asstes not company assets. He has stockbrokers and asset managers like most people. While he is certainly in charge of his affairs, he has advisors who helped him get into this mess.

The fact that the stock value of his company dropped 65% in 45 days due partly to a housing bubble does not indicate he was a reckless leader.

 

[smurphy]

Regardless of the excuses, owning investments on margin is reckless, isn't it? It's a huge gamble and all these glorified craps players are now getting burned.

 

[Glenn Quagmire]

Why on earth would a CEO buy stocks on margin??? What, he doesn't have the money to buy them outright?

In other news, CHK has been absolutely destroyed lately. Trading in the $16 range today, but in July of this year it was around $65. Brutal.

 

[IntenseOperator]

Glad this nice guy isn't running my company.

They should have just forced him to have a gay guy for his avatar, like BBC has.