Thanks to reader Jake who pointed us to an article in the Casper Star Tribune today announcing the resignation of Home Depot CEO Robert Nardelli, who was quoted below regarding the Depot’s Chinese acquisitions earlier this month. From the article:
Embattled Home Depot Chief Executive Robert Nardelli, under fire from stockholders for earning hundreds of millions at the same time the company’s stock fell and market share dropped, resigned suddenly Wednesday and will walk away with a severance package of $210 million, the company announced.
Home Depot Inc. said in a statement that Nardelli, 58, will end his six-year tenure as the company’s president, chairman and chief executive effective immediately “by mutual agreement.” Vice Chairman Frank Blake, 58, will replace Nardelli as head of the world’s largest home-improvement chain, which is based in Atlanta.
The article goes on to suggest that Nardelli’s departure likely comes from his having become “a lighning rod for critics of hefty corporate executive pay” citing “a disastrous Home Depot annual meeting last May” where “Nardelli, the only director present, refused to answer questions or respond to criticism from shareholders about the hundreds of millions in pay, benefits, and stock options he had pulled down since he took over leadership of the chain in 2000.”
As if to confirm their suspicions, the article reports that “Home Depot shares rose on news of Nardelli’s departure.”
For those not in the know, Nardelli apparently
replaced Jack Welch, who was responsible for the shakeup six years ago that, according to the article, “reined in store managers, who ran each location as they saw fit, consilidated divisions, and decentralized locations.” While that might make business sense, there seemed (at least in my opinion) to be unintended consequences: the loss of most knowledgable personnel at the store level. (As Rick correctly points out in comments, Nardelli’s move to the ‘Depot came after he failed to replace Welch at GE. Thanks, Rick!)
There’s a lot more interesting information in the article, which is a must read if you’re a ‘Depot follower.
Embattled Home Depot CEO Resigns [CasperStarTribune.net]