Forbes cites several reasons for McClendon, who resigned as the company’s chairman in May, to be on its list. For one thing, the company’s stock dropped 20 percent this year. Today it’s still falling, down about 2 percent since the markets opened.
The magazine also reports that “several major banks” loaned him money and then landed jobs working with Chesapeake Energy Corporation (NYSE:CHK) as financial advisors or underwriters. McClendon also apparently took out a personal loan of $500 million from EIG Global Energy Partners, which is a major Chesapeake financer. This constitutes a conflict of interest.
Reuters also reported that McClendon operated a secret $200 million hedge fund which traded gas and oil. This was another major conflict of interest.
In addition Forbes said he “made personal trips on company jets,” asked employees of Chesapeake Energy Corporation (NYSE:CHK) to do personal jobs for him and made a sponsorship deal with the Oklahoma Thunder while he owned the team, which was another conflict of interest.
McClendon joins nine other CEOs who are ‘lucky’ enough to be on the list. Former Best Buy Co., Inc (NYSE:BBY) CEO Brian Dunn and Former Avon Products, Inc. (NYSE:AVP) chairman and CEO Andrea Jung both made the list, as did Zynga Inc (NASDAQ:ZNGA) CEO Mark Pincus and former BANKIA SA (PINK:BNKXF) president Rodrigo Rato.
J.C. Penney Company, Inc. (NYSE:JCP) CEO Ron Johnson, Former Susan G. Koman for the Cure CEO Nancy Brinker and Michael Hervey, acting CEO at Long Island Power Authority all made the list as well. Former Barclays PLC (LON:BARC) (NYSE:BCS)CEO Robert Diamond and HSBC Holdings plc (LON:HSBA) (NYSE:HBC) CEO Stuart Gulliver round out the top ten.
Forbes didn’t give any of the CEOs an official ranking other than to simply say they were among the “Worst CEO Screw-Ups of 2012.”