The custodian of a group of New York City pension funds is calling on Chesapeake Energy Corp. shareholders to vote against two board members, saying that they failed to monitor financial activities of the company's chief executive that have engulfed the natural-gas giant in controversy, the Wall Street Journal reported today. The City of New York Office of the Comptroller, representing pension funds that own 1.9 million shares of Chesapeake, is opposing the only two directors up for election, who both serve on the company's audit committee: V. Burns Hargis, president of Oklahoma State University, and Richard K. Davidson, former chief executive of Union Pacific Corp. Chesapeake has come under intense scrutiny in recent weeks as it deals with revelations that co-founder and Chief Executive Aubrey McClendon used his stakes in the company's wells to borrow up to $1.4 billion from financial firms that do business with Chesapeake.
