Shareholders of Chesapeake Energy sued the company, demanding corporate governance reforms.

Question

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Big shareholders sued Chesapeake for what they considered an irresponsibly generous 2008 compensation package to McClendon and demanded that the company overhaul its compensation practices.In the resulting settlement, the company agreed to some compensation and corporate governance reforms, including the hiring of an independent compensation consultant and a majority vote for election of board members and a so-called lead independent director.

Shareholders of Chesapeake Energy Sued the Company, Demanding Corporate Governance