Home Depot - Potential Good News

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Today, Bob Nardelli, their CEO, got fired.
Maybe the new guy can turn the place around
blog link to more info about Bob ( or " it's all about Bob" )
http://sethgodin.typepad.com/seths_blog/2007/01/do_you_want_to_.html
btw looks like he gets a $210,000,000 severance package
he's a master of double talk
http://www.directorship.com/publications/0906_nardelli.aspx
he could have been a politician with is ability to talk & not answer questions but obviously he made the correct financial decision
OTOH with his $210 million he could buy himself a governorship somewhere
cheers Bob
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BobK207 wrote:

Unfortunately, the Iraqis just hanged him.
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BobK207 wrote:

I just came back from HD an hour ago. I wondered why every employee smiled and asked if they could help. :-)
--
Bill
in Hamptonburgh, NY
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Sure, but tomorrow it will be back to the same old same old.
"Come meet the new boss, same as the old boss."
-Pete Townsend
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wrote: | | > I just came back from HD an hour ago. I wondered why every employee | > smiled and asked if they could help. :-) | | Sure, but tomorrow it will be back to the same old same old. | | "Come meet the new boss, same as the old boss."
"HD wasteland, it's only HD wasteland! they're allllllllllll waaasted".
| | -Pete Townsend
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John Reddy wrote:

They pretty much have to. The only way big box stores can pay for all of the overhead and big salaries of upper management is to spin how good their stores are and have poorly paid "associates".
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While I'm not a stockholder (Wish that I was years ago) in Home Depot I think the shameful thing about all this is although he was "Fired" he left with $210,000,000.00 for what? FAILURE? Something is wrong when CEO's and Executive level people have Golden Parachutes that guarantees a fortune for failure to perform, just as Nordelli did. If it were a store manager whose store failed to excel or meet sales expectations or some department manager the only thing they would leave with or get for being fired would be uncertainty about their families future and a bad job reference to carry with them.
To me that's the story. I'm glad for the Stockholders whose stock will most likely go up due to his leaving, if but for a short while, but $210 Million for failing to do your job?
On 1/3/07 4:30 PM, in article snipped-for-privacy@i12g2000cwa.googlegroups.com, "BobK207"

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Poor Guy!!! I hope he can live on 210 million!!!
Gary KW4Z wrote:

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snipped-for-privacy@backpacker.com writes:

I think you are being sarcastic, but if he puts it into a 5% earning savings account, the interest alone could pay for 980 minimum wage earners who work 40 hours a week 52 weeks a year. ( / (* .05 210000000) (* 5.15 40 52)) =~ 980.21 (unless i mistyped someplace)
--
May no harm befall you,
flip
Ich habe keine Ahnung was das bedeutet, oder vielleicht doch?
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I would subtract inflation.
However, if I got that much money, I would put most of it into a total USA stock index fund such as Vanguard "Index Total" (name of the fund in short). Long term expectation based on the past (no guarantee) is about 9% annual rate of return, or about 6% above inflation as measured by the Consumer Price Index. It can take 30 maybe 35 years to adequately average out ups and downs in the stock market based on what happened in the past. (I would say good indicators are S&P 500 with dividends reinvested when received from the 1932 low to the 1982 low, or from the 1929 high to the roughly 2000 high. IIRC, that's about 9.6% annual rate of return, and good major index funds have annual expense ratio less than half a percent so should have returned to their investors at least 9% over those periods if they existed and operated by their current rules and methods through such periods.)
I would put a few million out of such a big sum into a "prime" money market fund (or two or three) and a few million into an intermediate term bond fund (or two or three) to protect myself against the future failing to continue the stock market performance of the past 140-plus years. And 200K (FDIC limit last time I checked) into CDs of a few years, not all maturing simultaneously. And ask the bank if they offer higher interest rates for oddball maturity times - I have found it a little common for banks to do that, such as 13, 17 and 19 month CDs paying more than 12 and 18 month ones - but sometimes you have to ask; they only sometimes advertise these! Also ask more than one bank! If you want a $100K CD, also see what you can get in NYC - there is even so much as somewhat of a market rate for $100K CDs from big-name banks in NYC!
- Don Klipstein ( snipped-for-privacy@misty.com)
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Gary KW4Z wrote:

I agree. The problem at Home Depot wasn't just the CEO it was, and is, the BOD.
Matt
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Gary KW4Z wrote:

Shit! I'm willing to fail to do my job for a mere $100 million. Mention my name to the board, will ya?
--
Mortimer Schnerd, RN
mschnerdatcarolina.rr.com
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"Mortimer Schnerd, RN" <mschnerdatcarolina.rr.com> wrote in message

I was going to be a pitcher for the RedSox but it only paid $5 million a year and I'd have to work, not just get fired. I'd rather get fired.
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I got into a situation a few years ago where I was told to do things the manager's way or else. I chose the "or else" but it didn't include $210 million to go away. I'm obviously in the wrong line of work.
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Ouch!
The Atlanta Journal publishes in Home Depot's hometown.
I'm a 7 year HD associate and today was the best day I've had in years. You shoulda heard the cheers!
Nardelli benefits grossly from appalling standard http://www.ajc.com/opinion/content/opinion/bookman/stories/2007/01/03/0104edbookman.html
Published on: 01/04/07
Bob Nardelli was, by almost any measure, a failure in his job.
As chairman and chief executive officer, Nardelli led Atlanta-based Home Depot for six years, and during that time the company's stock price declined almost 8 percent. In that same time frame, the stock market as a whole rose almost 17 percent, and the stock price of the company's prime competitor, Lowe's, soared, as did its market share.
Nardelli's real failure runs still deeper, though, in ways less easily measured. Home Depot's once sterling reputation - among customers, shareholders and employees - also plummeted under his leadership, a critical failing for a retail company whose dominance in the home-improvement sector was once built on customer service.
So on Wednesday, Nardelli paid the price for his failure, just as football coaches and others do, with the company announcing his resignation. And as part of the deal arranged for his departure, Nardelli will take with him a package of benefits totaling $210 million.
That buyout, combined with his previous compensation, means that for his six years of failed leadership at Home Depot, Nardelli will have reaped several hundred million dollars from company shareholders.
Ladies and gentlemen, that's obscene.
Typically, criticism of soaring executive pay is dismissed as mere envy or class warfare. Successful people - the producers in society - ought to be rewarded, the theory goes. If CEO pay is now several hundred times that of the average worker, well, market forces must be allowed to play out, and the only ones who complain are the losers.
Well, not only the losers. Warren Buffett, the head of Berkshire Hathaway and by most accounts the world's savviest investor, has also been highly critical of runaway CEO pay. In his company's 2005 annual report, he discussed the problem in terms that seem to describe Nardelli perfectly.
"Too often, executive compensation in the U.S. is ridiculously out of line with performance," Buffett wrote. "That won't change, moreover, because the deck is stacked against investors when it comes to CEOs' pay. The upshot is that a mediocre-or-worse CEO ... all too often receives gobs of money from an ill-designed compensation arrangement."
In Nardelli's case, there was no accountability built into the system, only guaranteed "gobs of money," to borrow Buffett's description. If Nardelli succeeded at Home Depot, he was going to be a very rich man, which is fair enough. But if he failed, he was also going to be a very rich man, and there's the rub.
Adam Smith, the 18th century Scottish philosopher, is revered as the founder of capitalist theory; among many other ideas, he contributed the concept of market forces operating as an invisible hand, guiding the economy with far more wisdom than government or anyone else could ever manage.
However, Smith was not naive about the ways in which the "invisible hand" could be manipulated and thwarted by those with the power to do so. And he was particularly harsh about the impact of guilds, the associations of tradesmen and artisans who joined together to insulate themselves from competition and basically set the price for their labor and skills artificially high.
That's in essence what corporate executives have become in this country, an informal but highly effective guild. As Buffett and others point out, it is a closed system in which CEOs, retired CEOs and future CEOs sit on boards of directors and compensation committees, setting each other's pay with no incentive whatsoever to keep that pay within bounds of decency or justice.
In fact, for a CEO or other board member to actually object to another CEO's pay package, Buffett once wrote, "would be like belching at the dinner table." Members of the guild just don't do that to fellow guild members.
As the Home Depot case demonstrates, there is no economic explanation for such ludicrous arrangements, only greed allowed to play itself out with no force to countervail against it. Smith, writing more than 200 years ago in his classic "Wealth of Nations," explained it all quite well when he wrote: "All for ourselves and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind."
Jay Bookman is the deputy editorial page editor. His column appears Thursdays and Mondays.
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| While I'm not a stockholder (Wish that I was years ago) in Home Depot I | think the shameful thing about all this is although he was "Fired" he left | with $210,000,000.00 for what? FAILURE? Something is wrong when CEO's and | Executive level people have Golden Parachutes that guarantees a fortune for | failure to perform, just as Nordelli did. If it were a store manager whose | store failed to excel or meet sales expectations or some department manager | the only thing they would leave with or get for being fired would be | uncertainty about their families future and a bad job reference to carry | with them. | | To me that's the story. I'm glad for the Stockholders whose stock will most | likely go up due to his leaving, if but for a short while, but $210 Million | for failing to do your job? |
sounds like he got the same deal as B Clinton did millions for failing to do his job. does the ceo of hd get a new library as well?
Damn democrats
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Bill Clinton did a hell of a better job than the lying idiot there now. He didn't cause the death of 3000 US soldiers and the maiming of 20,000. for a totally unjustified war.
Bob
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Bob F wrote:

Who cares if the war was "unjustified?" We get to kill lots of enemies of this great republic. As for casualties, they are all volunteers and they recognized that in return for the permission to kill the aforementioned enemies, certain risks are involved. Just like firefighters or police.
Interestingly, 85% of the armed forces members who've served in Iraq or Afghanistan have re-enlisted. Of the remaining 15%, some retired, some died, some were disabled, and some had other obligations. Only a handful dropped out of the military because they thought the project was flawed.
If YOU don't think 25,000 casualties over three years is a good idea, that's your choice (even though we had that many casualties in ONE DAY during the Battle of the Bulge), but you shouldn't object to those serving having opportunity to kill people and destroy stuff just because YOU don't like the concept.
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that's
the
I have a problem with training people to hate us, and training them on how to kill us. The whole thing was just blind stupidity.
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HeyBub wrote:

You tell um Adolph.
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