Chesapeake Energy Corp. faces opposition from large pension funds and proxy-voting advisory firms to the ratification of its pay packages for Robert D. Lawler, president and CEO, and other top executives.
The C$278.9 billion ($215.5 billion) Canada Pension Plan Investment Board, Toronto; $186.8 billion California State Teachers' Retirement System, West Sacramento; $178.3 billion Florida State Board of Administration, Tallahassee; and the C$171.4 billion Ontario Teachers' Pension Plan, Toronto, plan to vote against the pay packages, according to their proxy-voting disclosures.
Glass Lewis and Institutional Shareholder Services both recommend their institutional clients vote against ratifying the pay.
The say-on-pay-vote is non-binding.
Mr. Lawler's total pay in 2015 was $15.4 million, up 5% from 2014. Pay of the other four executives in 2015 ranged from $4.3 million to $5.3 million.
OTPP said in its disclosure, “We are concerned that the compensation plan this year does not provide an appropriate link between pay and performance.”
CalSTRS and Florida SBA also plan to vote against the re-election of directors John J. Lipinski and Thomas L. Ryan. In addition, CalSTRS plans to vote against the re-election of directors Archie W. Dunham and Merrill A. Miller Jr. FSBA also plans to vote against the re-election of director Vincent J. Intrieri. CPPIB, OTPP, Glass Lewis and ISS support the re-election of all the directors.
Chesapeake Energy's annual meeting is Friday in Oklahoma City.