Speaking of energy, and to continue the hijack, I was reminded of this old article about a genial looking gentleman ( photo with his niece, Miss Upton ), noted as an American Oligarch, a Mr. Aubrey McClendon, of whom I had never heard.
Alternet
I don’t know business, although his practices seem rather Microsoftian, so I can’t make any moral judgement. I would just say that despite his not being a fine manager, losing $2 billion, an’ all, he didn’t have to retire to the poorhouse since his colleagues nobly rallied around him and rewarded him for failure.
The people who want to ensure the lazy poor aren’t rewarded with the tax-payers’ dime have no problem with inefficient management soaking away millions of dollars. Or if any do, they never do anything about it.
McClendon, co-founder, CEO and until a few weeks ago Chairman of Chesapeake, was discovered running a hedge fund inside of Chesapeake, personally profiting on the side from large trading positions that his public company Chesapeake took in the gas and oil markets.
Reuters also discovered that McClendon took small personal stakes in natural gas wells bought by Chesapeake, then borrowed against the wells’ reserves from the same banks that Chesapeake borrowed from—basically, the banks kicked back sweet lending deals to McClendon on the side as McClendon arranged less-than-sweet loans to his publicly-owned company, Chesapeake, kicking profits from Chesapeake’s shareholders and employees’ pockets into the banks and into Aubrey’s accounts.
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It’s not the first time McClendon has been caught plundering Chesapeake at the expense of shareholders, pension fund investors and employees: In 2008, McClendon bet and lost about $2 billion worth of Chesapeake Energy stock he owned—94% of Aubrey’s personal stake in Chesapeake– on a margin call when natural gas prices collapsed. Aubrey bet that natural gas prices would continue soaring, you see.
But like his peers in the oligarchy class, Aubrey’s loss became everyone but Aubrey’s loss: He was awarded a “CEO bailout” by his board of directors, who honored Aubrey with a $75 million “bonus” to bring his total pay in 2008 to $112 million, making Aubrey McClendon the highest-paid CEO in Corporate America that year. Even though Chesapeake’s earnings dropped in half, and its stock fell 60%, wiping out up to $33 billion in shareholder wealth.