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Chesapeake Energy Company Case Study

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Assignment 1: Compensation Practice

The company I chose to research is Chesapeake Energy that is listed on the New York Stock Exchange as CHK. They are the second largest producer of gas in the United States with currently 3,200 plus employees. There are headquartered in Oklahoma City, OK which is also the home of the NBA Oklahoma City Thunder team. As noted, in the “Fortune Magazine report” Chesapeake is ranked 24 as having one of the best compensation packages.
Their compensation strategy is based on pay-for-performance concept that places their employee’s compensation with the individual and how well the company performs. In a way this makes each employee accountable for the company’s growth. Chesapeake Energy gives their employees an annual …show more content…

• In West Virginia Chesapeake Energy earned the second largest fracking violations of all operations from 2008 to 2013 with 80 violations pertaining to 371 wells.
• Aug. 2011, (Natural Gas Watch) acquired documents through the Freedom of Information Act from the (Environmental Protection Agency) which should it had "pumped more than 14 million gallons of fluid to a depth of more than two miles in a natural gas well in Bradford County, Pennsylvania, before a blowout which sent tens of thousands of gallons of the toxic liquid into a nearby creek." The documents also showed that "the fluid Chesapeake used in operations at the well contained more than two dozen chemicals that included formaldehyde, hydrochloric acid, methanol, glutaraldehyde, two-butoxyethanol and methanol.
• An explosion in February sparked a large fire and injured three workers in Independence Township, Washington County, PA. The fire started at a site operated by Chesapeake Appalachia LLC, a subsidiary of Chesapeake Energy.
Assignment 1: Compensation

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