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Lucky42
Topic Author
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Home Depot Ceo Gets 210 Mil Exit Pkg

Tue Jan 09, 2007 4:11 pm

Is it me or am I the only one who is sick and tired of these incompetent executives who are rewarded handsomely no matter what the outcome? This clown Robert Nardelli who while as CEO the stock has tumbled can still walk away with a golden parachute. Yet all the "A" netters think the lowly greedy union scumbags are to blame for the ills of society while these goons get away with murder makes my blood boil....Thanks for letting me vent...now flame me!!
 
ltbewr
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Tue Jan 09, 2007 7:05 pm

One of the members of the Board of Directors of Home Depot that probably gave this ex-CEO was also a Member of the Board of Directors of the NY Stock Exchange that also gave huge salaries to NYSE CEO Grasso. Grasso was forced to resign from the NYSE in 2003 when his extremely high compensation angered major investors (especially public employees pension funds like CALPERS) and the State Attorney General.
We have seen this too often in USA companies where the Board of Directors included a tight circle of people who make sure their buddies also got high pay for their being the CEO of another company. While I don't want too much government regulation of how executive compensation is determined by corporations, we could see the Democrats that now control the Congress change tax and coporate laws to discourage excessive compensation and perks or at least tie it to company performance or how much the bulk of employees get paid.
 
deltagator
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Tue Jan 09, 2007 11:23 pm

Quoting LTBEWR (Reply 1):
we could see the Democrats that now control the Congress change tax and coporate laws to discourage excessive compensation and perks or at least tie it to company performance or how much the bulk of employees get paid.

And that would be completely unconstitutional since you are then dictating how a company runs its business and compensates its employees thus breaking existing laws against restricting interstate commerce.

As long as they aren't breaking any laws related to safety I could give two shits if Nardelli or any other CEO gets a big package for salary, retirement, or forced resignation. In the grand scheme of things it is a drop in the bucket. I am with you on executive failures being rewarded but in this case I think your opinion is misguided since I don't consider Nardelli a failure but rather a victim (perhaps a bad choice of words given his monetray situation) of circumstances.

Nardelli was not a complete failure but rather a bad fit for the situation. Following someone as dynamic as Bernie Marcus is always tough whether in business, sports, etc. Arthur Blank found this out even though he was considered a co-founder with Marcus. Blank was always the numbers guy why Bernie was the vision guy. Arthur struggled when given that role and ultimately left the company. The same issue exists for for Nardelli today. THD took a chance with him and it obviously didn't work out. Perhaps their next choice won't have the baggage that Arthur and Bob had following them around in the shadow of Bernie.

As someone who has worked for both Home Depot and Lowe's as an employee and a consultant I think Nardelli was the wrong choice for THD from the beginning. Many factors have lead to THD sort of floundering along these last few years. They have expanded into almost every conceivable market and now have stores cannibalizing each other when they need more of a sustained growth and modifications of existing stores to improve. Competition from Lowe's, who was late to the big box store game, has also eaten into THD's lead and will continue to as consumers have a better choice now.

Another issue was the talent drain after Nardelli came to power due to his micromanaging ways that he learned under Welch at GE. In the past Bernie Marcus and Arthur Blank let managers run their store however they wanted as long as they performed with their numbers. These guys were given total autonomy and did not like the total oversight from high above. Nardelli needed to worry about the strategic vision and leave daily numbers to others.

A final thing that hurt Nardelli was his trying to implement a Six Sigma program which is suited to manufacturing (like at GE) to a retail environment. IMO this program never made much sense for a company like THD and although I believe they are still doing it I won't be surprised if it is scrapped with him being gone now.

Quoting Lucky42 (Thread starter):
while as CEO the stock has tumbled

Tumbled? I don't think so. Become stagnant? More correct given some of my reasons above and through this chart.



Quoting Lucky42 (Thread starter):
incompetent executives....This clown Robert Nardelli....while these goons get away with murder

Debate 101 was not your strongpoint in school was it? Using terms like these don't help you prove your point but show you to be bitter. I can understand your frustration but resorting to name calling and class warfare emotions don't help your argument. I worked for a company that was Enron before any of us had ever heard of those guys. My CEO screwed us all over during the dot com buzz and I'm still paying for it today. I've moved on with my life and chalked it up to a life's lesson and am just glad I didn't have all my eggs in one basket.

Sorry for the long reply but I hope you see both sides of the issue.
"If you can't delight in the misery of others then you don't deserve to be a college football fan."
 
TedTAce
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Wed Jan 10, 2007 8:14 pm

Hummm... What to say..Yes, you can debate how good or bad Nardolhead was for THD, but you can't debate that $210M is an offensve ammount for any performance as percieved by the common man. (In this day and age) No man for his personal life should have any NEED for that kind of money, especially when his perfomance is open for debate. If Nardo had made the company trillions, ok, fine, thow the dog a bone he would have 'deserved' it. But when his impact was questionable...no.

Let's just say I know someone who is a contractor for THD. Granted they were told that this is a likely contract only temp position up front. But imagine their dismay when the company brought in Indians to do the job they will not be able to hold. All this in the name of 'cost saving' yet the company turns around and blows the kind of money that could keep him, the other temps, and his whole department around for YEARS.

Now do you find this a bit offensive Delta?
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mika
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Wed Jan 10, 2007 8:31 pm

No single man can be worth that much for a company i am pretty damn sure. In theory yes, but in practice i seriously doubt it.

It's a sickening amount of money in either case, and things like these should be somehow controlled and reprimanded (to some extent). We se these alot in Sweden as well, luckily in the last year there have been arrests and prosecutions in this matter.


I dont believe that it's wrong to be rewarded for your work, even if it's alot. But $210 million is an extreme amount of money for anyone or any sweat and labour.
 
deltagator
Posts: 6170
Joined: Fri Sep 23, 2005 9:56 am

RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Wed Jan 10, 2007 11:00 pm

Quoting TedTAce (Reply 3):
Now do you find this a bit offensive Delta?

Honestly Ted I don't find it offensive. It bothers me that companies are quick to offshore work in the quest to save money. In my short time in India I saw that the cost savings are not what folks believe them to be and eventually the companies might smarten up and bring that work back home. At the end of the day the job is the company's to do whatever they want to do with it. If folsk have skills companies think can be done cheaper elsewhere by others that is always going to happen. I'm not some corporate raider robber baron but I am realistic with business.

I didn't mean my response to sound like some sort of THD rah rah speech or a defense of Nardelli. As I said I thought he was a bad fit for THD and has ultimately hurt them in the long run against Lowe's. There is still a huge gap between the companies but because of him it has closed a lot.

210 million seems like an assload of money to us and it is but compared to other packages it is a drop in the bucket. In the case of THD the stockholders might not have gotten nearly the returns they were used to in the older days but he didn't run the company into the ground or commit criminal acts like was done at Enron or Adelphia.
"If you can't delight in the misery of others then you don't deserve to be a college football fan."
 
Pope
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Wed Jan 10, 2007 11:35 pm

Quoting DeltaGator (Reply 2):
And that would be completely unconstitutional since you are then dictating how a company runs its business and compensates its employees thus breaking existing laws against restricting interstate commerce.

I hate to disagree with a fellow Gator alumn, particularly when we are still basking in the glory of our dual NCAA National Championships, but actually absolutely within Congress's power to do whatever they want within the tax code as long as it raises "some" revenue. The ancillary effects, like encouraging or discouraging a particular behavior is not even examined by the courts once the government can establish that revenue can theoretically be raised by the measure.

In fact, the US tax code already contains Section 162(m) which limits the corporation's deductibility of compensation payments in excess of $1M by a publicly held corporation to the CEO and 4 highest officers unless the amount is incentive based. There is talk about imposing excise taxes on the payor and payee as well.
Hypocrisy. It's the new black for liberals.
 
IFEMaster
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Thu Jan 11, 2007 1:01 am

This needs to be looked at in perspective:

Nardelli has been awarded a huge compensation package by a compensations committee.

That committee is comprised of elected members of the board.

Those members were elected by the shareholders of Home Depot.

Therefore, it's the shareholders that have awarded him this package.

Plus, you can't blame HIM for the amount. Honestly, if you were offered $210m to retire on, are you telling me you'd turn it down? I certainly wouldn't. Good for him, I say.
Delivering Anecdotes of Dubious Relevance Since 1978
 
TedTAce
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Thu Jan 11, 2007 9:17 am

Quoting IFEMaster (Reply 7):
Honestly, if you were offered $210m to retire on, are you telling me you'd turn it down?

Unless I knew I had KICKED ASS and made the company at LEAST $1billion, yes. Oh and of course I'd make sure that there was enough money to keep the company jobs in the US for at least 15 years after I left and made the company contractually liable for 10X the ammount (to me so I could turn around and hire them) of every job they shipped overseas during that time
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IFEMaster
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Thu Jan 11, 2007 9:26 am

Quoting TedTAce (Reply 8):
Unless I knew I had KICKED ASS and made the company at LEAST $1billion, yes. Oh and of course I'd make sure that there was enough money to keep the company jobs in the US for at least 15 years after I left and made the company contractually liable for 10X the ammount (to me so I could turn around and hire them) of every job they shipped overseas during that time

That's very easy to say when you're observing from the ground.

We have no idea what the contractual terms were. It has nothing to do with if there's money for jobs for 15 years, but it has everything to do with a man accepting a compensation package for AGREED TO BY THE SHAREHOLDERS. $210m is a drop in the bucket to Home Depot.
Delivering Anecdotes of Dubious Relevance Since 1978
 
TedTAce
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Thu Jan 11, 2007 12:24 pm

Quoting IFEMaster (Reply 9):
$210m is a drop in the bucket to Home Depot.

Then why are they spending 1.3 million to save about $200K/year over the 3 years it will take to realize it's not worth it?
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deltagator
Posts: 6170
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Thu Jan 11, 2007 12:32 pm

I picked up the latest issue of BusinessWeek tonight at the DC airport. I'll read the cover story on his downfall and get back to you.
"If you can't delight in the misery of others then you don't deserve to be a college football fan."
 
174thfwff
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Thu Jan 11, 2007 1:13 pm

These people aren't in charge of your local ACE Hardware store Lucky42. Millions of people rely on Home Depot for goods, and thousands directly or indirectly rely on Home Depot for jobs.

I don't need to say much more as DeltaGator posted the chart for you to see the "tumbled" stock in it's glory.
Brooklyn, Queens, Manhattan, Staten, Uptown, what now? Lets make it happen.
 
IFEMaster
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 1:02 am

Quoting TedTAce (Reply 10):
Then why are they spending 1.3 million to save about $200K/year over the 3 years it will take to realize it's not worth it?

You'd have to ask them - as a publicly floated company, I imagine it's an effort to turn a profit in a specific part of the business - but considering they posted $85.1 Billion in post tax revenue in 2005 (2006 is yet to be posted), it's quite easy to see how they can come up with $210 million.
Delivering Anecdotes of Dubious Relevance Since 1978
 
TedTAce
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 8:11 am

Quoting IFEMaster (Reply 13):
(2006 is yet to be posted)

Which is foolish considering they hit FY 07 in October. They are already into Q2 and they still haven't a clue what they did in fy 06.. I HATE big business.
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IFEMaster
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 8:15 am

Quoting TedTAce (Reply 14):
Which is foolish considering they hit FY 07 in October. They are already into Q2 and they still haven't a clue what they did in fy 06.. I HATE big business.

Ted, don't be naive. Most large corporations don't post their final annual revenue until end of Q1 the following year, to coincide with the 3-4-3 financial calendar close and GAAP standards. It's nothing unusual for publicly floated companies. They know full well what their revenue was in '06. It's standard business practice. My FY closed September 31st 2006, but I haven't filed my corporate earnings yet, nor have I had my GAAP analysis done. That will all occur on 03/07.
Delivering Anecdotes of Dubious Relevance Since 1978
 
767Lover
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 8:21 am

He hasn't gotten it yet.

A lawsuit has been brought forth by a group of shareholders, lead by the city of Pontiac, MI (a major shareholder), in Fulton County (Ga) Superior Court As part of this, a temporary restraining order has been requested to prevent severance from being paid.

The story is on www.ajc.com, but it is subscription only.
 
TedTAce
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 9:20 am

Quoting 767Lover (Reply 16):
A lawsuit has been brought forth by a group of shareholders

Great, more heavy handed action by stock holders. What happened to buying company shares because they did neat shit, treated their employees reasonably, and behaved in an ethical manner?
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deltagator
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 2:05 pm

Quoting TedTAce (Reply 17):
Great, more heavy handed action by stock holders. What happened to buying company shares because they did neat shit, treated their employees reasonably, and behaved in an ethical manner?

Hold on now. You can't have your cake and eat it too. Which do you want to fuss about more? The ex-CEO getting an assload of money or a group of shareholders who think said money is hurting their ability to make a profit off their investment so they fight "the man." Which one is worse to you?
"If you can't delight in the misery of others then you don't deserve to be a college football fan."
 
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gunsontheroof
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 2:09 pm

Ah yes...the "Bob Nardelli Care Package" has served as the garbage receptacle in my store's lunch room for the last week. Best wishes, Bobby.  sarcastic 
Picked a hell of a week to quit sniffing glue.
 
TedTAce
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 3:34 pm

Quoting DeltaGator (Reply 18):
You can't have your cake and eat it too.

Yes I can

Quoting DeltaGator (Reply 18):
Which one is worse to you?

I'll take the pile of shit that smells like 777.... over the pile of shit that smells like Stu... you tell me which is which  Wink
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FlyDeltaJets87
Posts: 4479
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RE: Home Depot Ceo Gets 210 Mil Exit Pkg

Fri Jan 12, 2007 4:01 pm

Quoting Lucky42 (Thread starter):
Is it me or am I the only one who is sick and tired of these incompetent executives who are rewarded handsomely no matter what the outcome? This clown Robert Nardelli who while as CEO the stock has tumbled can still walk away with a golden parachute. Yet all the "A" netters think the lowly greedy union scumbags are to blame for the ills of society while these goons get away with murder makes my blood boil....Thanks for letting me vent...now flame me!!

As long as regular employees aren't getting screwed over and there's no insider trading going on and the company's not failing to turn a profit, what business is it of your's (our's) what a company to chooses to pay a CEO on the way out the door.
Still $40 million less than David Beckham and A-Rod are getting paid to play professional sports in the US.

Quoting DeltaGator (Reply 18):
Hold on now. You can't have your cake and eat it too.

Why not? What's the point of cake if I can't eat it? Doesn't do much good sitting in front of me.  wink 
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