Chesapeake Shareholders Approve Governance Reforms

Chesapeake Energy Corp shareholders on Friday voted to approve a series of governance reforms that included eliminating three-year terms for its board members.

The changes come a little more than a year after former Chief Executive Officer Aubrey McClendon was pushed out over disagreements over spending and a governance crisis. Since then, the board under Chairman Archie Dunham has made reform a priority.

Nearly all of Chesapeake's shareholders also approved measures to increase the size of the company's board of directors and to allow individuals or groups owning 3 percent or more of the company's shares to nominate directors.

Investors also voted by a wide margin in favor of Chesapeake's pay packages for executives.

Shares of Chesapeake, which is based in Oklahoma City, Oklahoma, are trading around a three-year high. On Friday, the stock edged down 13 cents to $30.36 in midday New York Stock Exchange trading.

(Reporting by Anna Driver; Editing by Leslie Adler)