Top > Business > 2007 > January > 2007-01-26

Home Depot Gives CEO Golden Exit Package

Home Depot announced Wednesday that its CEO, Bob Nardelli, aged 58, left the company with a $210 million exit package. Home Depot announced that the decision was reached bilaterally in a meeting held on Tuesday and thanked the out going CEO, President and Chairperson for his strong leadership in the past six years. The chain announced Frank Blake will replace Nardelli immediately. Home Depot shares gained 91 cents, which are 2.3%, due to the news of Nardellis`s exit.

Nardellis`s exit came as a surprise, since last September, Nardellis told the press that he has no intention of leaving the company and the director, Bonny Hill said the board of directors was pleased with Nardellis`s work, despite criticism voiced by some investors. Hill didn`t comment on Nardellis`s retirement.

Nardellis was under criticism for his high pay, especially during the time when the DIY chain was under financial trouble. Nardellis`s huge exit package, which is made up of $20 million in cash and a large package of stocks, bonuses and other incentives, has drawn quite of bit criticism itself. The International North American Worker`s Union, one of Home Depot`s main stockholders, said that Nardellis`s exit package was obscene. In a survey conducted recently, it was found that a record number of executives left their positions during 2006. Most of the 1,347 CEOs` who left their jobs did so due to retirement of quitting, although the survey found that a growing number of executives were forced to leave their jobs due to unprofessional conduct.