Posted on 01/03/2007 3:49:14 PM PST by seacapn
(AP) Dogged by criticism of his hefty pay and his company's poor stock performance, Bob Nardelli abruptly resigned as chairman and chief executive of The Home Depot Inc. after six years at the helm of the world's largest home improvement store chain, the company said Wednesday.
But he didn't leave empty-handed: the Atlanta-based company said Nardelli would receive a severance package worth roughly $210 million, an amount decried by some lawmakers as a golden parachute that sends the wrong message to investors.
"It's a sign of being totally out of touch," said Rep. Barney Frank, D-Mass., the incoming chairman of the House Financial Services Committee. "They don't understand the extent to which they make the American public angry."
Frank said he would push for legislation requiring public companies to allow shareholders to have a say in compensation and severance for senior executives. At Home Depot's annual meeting last May, shareholder proposals to give investors a say on the CEO's pay and to restrict retirement benefits for senior executives were rejected.
(Excerpt) Read more at cbsnews.com ...
Bravo. You really are brillant.
I'm constantly surprised that more of these boards don't hire counsel to negotiate the CEO compensation packages considering how incredibly incompetent they are at it. They make Gray Davis look like he was getting a fair price for electricity back in 2001 for CA taxpayers.
The reason for that is that there is only so much room in recieving, and there are only a given amount of people working frieght at night to put it on the floor. Just having 1 truck come in a day (or even hours) late makes a disaster for the freight crew, who all of a sudden have to make 150 pallets vanish in an 8 hour shift, instead of the usual 80.
Poor planning. As I said, Menards and Lowes don't have those problems.
I own several thousand dollars of HD stock and this DOES piss me off. CEO pay is a major joke since the late 80's and I am amazed they anyone still takes up for it even here on FR.
Most CEO's spend more time on building up compensation and buyout packages than running a effecient company. When have you seen a CEO leave with little pay after being canned because the company is doing poorly?
Excellent response.
Sounds like the morale boosting my company did 5 years ago when they eleminated merit bonuses.
Did you get your money?
abrupted resigned is code words for fired.
I worked at a Lowes warehouse in North MS in 1980. I never would have imagined it being such a large chain as it is today. It was a rather small Southeastern chain then.
I don't have an Ace near me, but that describes the one near my father's house in Florida. Every time I visit, he finds something for me to help fix with a trip to ACE.
Pray to GOD you never have to deliver to a Wal-Mart.
I'm not speaking about Barney Frank and his posing. Nardelli drove the company into the ground and walked away with a couple of hundred miillon large.
I'm perfromance-based too.
Be Seeing YOu,
Chris
Will admit that they have few employees that know where anything is at. More than likely they don't know what you are talking about in the beginning. So what else is new? Seldom do I find anyone at WalMart, Lowes, or most any other store that has a clue as to what something is or where you might find it.
It is poor planning. The store can't be expected to take responsibility if the truck driver doesn't show up on time.
Well, I did invest in a lot of stocks, and I did make money. Sure if I knew the future, and realized which stocks were going to go up, I could make a lot more, but no one does. You can only use your best judgment, and on average, investors will make the average return.
We could all improve on that if there were greater stockholder control, I think. Companies should be run for the benefit of their owners. That's the capitalist system. Management compensation should be set at levels that maximize the return to the stockholders, not the managers. Our economy would work a lot better if that were the case.
I agree with you about Ace Hardware. I used to have one around the corner from me. But Ace closed that store along with a lot of others in northern Alabama. I think that Lowe's and Home Depot are finally pushing them out of the market.
Menards and Lowes don't need appts. They have planned to have a big enough, and staffed enough receiving dept.
Also, in the LTL transportation industry, the standard for appts. would be a 2 hour window, not an exact time. Thus if HD says the appt. is at 1400. Our window is 1200-1400. When I show up at 1300 and am told I have to wait till 1400, this would be considered by all LTL companies as being 'detained' and the company would have to take the responsibility of paying detention time by the quarter hour.
I do agree that if I show up at 1401 and am told that I will have to wait until there is another opening, that is fair. Although as stated earlier, Menards and Lowes do not even need appts. Odd too, since Menards stores only have 2 dock doors (newer stores have 3-4), Lowes have 2 dock doors (some have 3-4), and HD has 4 with 3 of them not in use because of garbage and freight blocking them.
Man, I wish I could suck at my job and get paid $210 million to leave.
I have interviewed twice with HD for District or Regional management positions.
The first time there was several weeks worth of progressive telephone interviews then they just vanished and nothing, no explanation, nothing.
The second time (like I didn't get the hint the first time!) I got past a second interview and got the 'we're real excited, we'll call you back this afternoon'. That was about 18 months ago and I gave up waiting.
I've seen HD monkey with people's hours and make life tough for their floor workers.
Not only did I sell my poorly performing HD stock, I try not to shop there and unless they show some major changes I'd never again consider working there.
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