Why did Robert Nardelli resign as CEO of The Home Depot?

Robert Nardelli mutually agreed with the Board of Directors to step down from his positions as Chairman, President, and CEO. The press release does not provide specific reasons for his departure but states it was a mutual agreement.

Who is replacing Robert Nardelli and what is his background?

Frank Blake has been appointed as the new Chairman and CEO. He was previously the Vice Chairman of the Board and Executive Vice President, overseeing strategic business development, growth initiatives, and other key areas. Prior to joining The Home Depot in 2002, Blake held executive roles at General Electric and served as Deputy Secretary for the U.S. Department of Energy.

What is the financial package Robert Nardelli will receive upon his departure?

Mr. Nardelli is set to receive a separation package valued at approximately $210 million. This includes $20 million in cash severance, accelerated stock awards valued at approximately $77 million, unvested options worth about $7 million, earned bonuses and incentive awards totaling approximately $9 million, retirement benefits valued at around $32 million, and other entitlements.

Are there any other significant management changes announced?

Yes, Carol Tomé, Executive Vice President and CFO, will take on additional responsibilities including mergers and acquisitions and credit services. Joe DeAngelo, Executive Vice President of HD Supply, has been appointed to the newly created position of Chief Operating Officer, overseeing both HD Supply and the retail business.

HD 8-K: Leadership Changes

Summary

This 8-K filing from The Home Depot, Inc. announces a significant leadership change at the highest level of the company. Effective January 2, 2007, Robert Nardelli has mutually agreed to resign as Chairman, President, and CEO, concluding his six-year tenure. The Board of Directors has appointed Frank Blake, previously Vice Chairman and Executive Vice President, as the new Chairman and CEO, effective immediately. The company's Board expressed gratitude for Nardelli's contributions, highlighting investments in infrastructure, operations, market expansion, and strategic initiatives that led to growth and market share gains. They are confident Blake, with his experience in strategic business development and prior government service, is the ideal candidate to lead the company through challenging industry conditions and build upon its legacy. The filing also details Mr. Nardelli's separation agreement, outlining a compensation package valued at approximately $210 million, which includes cash severance, accelerated stock awards, bonuses, and retirement benefits, contingent on his adherence to restrictive covenants.

Key Highlights

1Robert Nardelli resigns as Chairman, President & CEO, effective January 2, 2007.
2Frank Blake is appointed as the new Chairman and CEO.
3The Board of Directors thanks Nardelli for his six years of leadership, citing infrastructure improvements, market expansion, and market share gains.
4Blake's previous roles included Vice Chairman and Executive Vice President, with responsibilities in strategic business development and growth initiatives.
5Carol Tomé, EVP & CFO, and Joe DeAngelo, EVP of HD Supply, are assuming additional responsibilities, with DeAngelo appointed as Chief Operating Officer.
6Nardelli's separation agreement is valued at approximately $210 million, including cash, stock awards, bonuses, and retirement benefits.
7Restrictive covenants, including non-compete and non-solicitation clauses, are part of Nardelli's separation agreement.

HOME DEPOT, INC. 8-K Report, Executive Changes (Jan 4, 2007)

Summary

Key Highlights

Frequently Asked Questions