We were going to try our usual contrarian take here and explain that $435 million over six years isn't that much money. But you know what? It is. Especially with falling profits diminishing profit growth and declining market share.
We know that Bob Nardelli was probably forced out but really, how much forcing does it take when a guy's got $210 million in severance coming to him? We keep thinking that Nardelli was probably humming "Damn, It Feels Good To Be A Gangster" as he walked out the door yesterday.
Home Depot Inc., the world's largest home-improvement retailer, ousted Chief Executive Officer Robert Nardelli after investors criticized him for earning $225 million during his six-year tenure.Home Depot invited further criticism by sending Nardelli, 58, off with $210 million as part of his separation package. Vice Chairman Frank Blake, 57, will replace Nardelli immediately, the company said in a statement.
Home Depot lost market share to Lowe's Cos. since Nardelli started in December 2000, and the shares declined 7.9 percent. The company is headed for its smallest annual gain in profit in at least nine years.
Home Depot's Nardelli Ousted After Six-Year Tenure [Bloomberg]
Posted by joe, Jan 03, 2007 2:17PM
Umm... falling profits? What are you looking at? The year before Nardelli joined HD earned $1.10. This year they'll earn $2.85. By every operating metric, Nardelli had a highly successful run. He just joined the company when it had a ludicrous 47x P/E.
And his compensation only consists of $20M in new severance. The other 190M was already granted compensation which is being included in his "severance" in order to get the executive compensation whiners in a tizzy.