Changes at Home Depot:
Home Depot announced the surprise departure of the CEO, Bob Nardelli, and effective January 2, 2007. The new CEO will be Frank Blake who was the Vice Chairman of the company.
The surprises just keep on coming it was reveled that Mr. Nardelli will be receiving a severance package valued at $210 million. There have been many shareholder complaints over the past few years concerned that Mr. Nardelli was being over paid and was underperforming as the CEO.
The company share price performance has been disappointing having with the share price down 8% over the past 6 years while under the guidance of Mr. Nardelli, this compared to competitor Lowe’s which is up over 200% in the same time frame.
Stock options made up a large part of the compensation package for Mr. Nardelli and Home Depot is now under investigation regarding the granting of options. The company recently stated that in reviewing their option granting procedures they have over stated earnings by $200 million over a 20 year period, this is not an inconsiderable sum.
Investors should be outraged at the severance package but relieved that Mr. Nardelli is gone, maybe a new CEO can turn the share price trend and bring some relief to the long suffering shareholders.
For more information go to www.campbellreport.com
The surprises just keep on coming it was reveled that Mr. Nardelli will be receiving a severance package valued at $210 million. There have been many shareholder complaints over the past few years concerned that Mr. Nardelli was being over paid and was underperforming as the CEO.
The company share price performance has been disappointing having with the share price down 8% over the past 6 years while under the guidance of Mr. Nardelli, this compared to competitor Lowe’s which is up over 200% in the same time frame.
Stock options made up a large part of the compensation package for Mr. Nardelli and Home Depot is now under investigation regarding the granting of options. The company recently stated that in reviewing their option granting procedures they have over stated earnings by $200 million over a 20 year period, this is not an inconsiderable sum.
Investors should be outraged at the severance package but relieved that Mr. Nardelli is gone, maybe a new CEO can turn the share price trend and bring some relief to the long suffering shareholders.
For more information go to www.campbellreport.com
posted by Grant | 3:04 PM
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