Chesapeake names former Conoco CEO as chairman

Oklahoma City-based Chesapeake Energy finds its stock plummeting. As Nancy Cordes reports, investors worry the company is being run into the ground.

(AP) OKLAHOMA CITY - Chesapeake Energy Corp (CHK) has named a new chairman to replace controversial founder Aubrey McClendon.

McClendon, who remains CEO and president, was stripped of his chairmanship after a series of corporate governance issues angered investors. The issues include a report that McClendon took a personal loan from a company that was doing business with Chesapeake.

In McClendon's place, Chesapeake appointed Archie Dunham, a former board chairman at ConocoPhillips, as an independent non-executive chairman. Dunham has no prior relationship with Chesapeake.

Chesapeake also appointed four new directors that were picked by the company's biggest investors.

The new board must help reassure company investors, who have seen Chesapeake's stock price drop 34 percent in the past year.