Home Depot CEO Quits with a Severence Package

The CEO (Chief Executive Officer) of Atlanta, GA-based Home Depot Inc. quit after six years on the job.

Robert Nardelli (age 58), upon quitting Home Depot, received a $210 million severance package.

The Cincinnati Post reported the following.

   "Nardelli's severance package includes a cash payment of 
    $20 million and the acceleration of unvested deferred stock 
    awards currently valued at roughly $77 million. It also includes 
    payments of earned bonuses and long-term incentive awards, account 
    balances under the company's 401(k) plan and other benefit programs 
    and certain retirement benefits."

Home Depot (HD) moved up on the news.

Home Depot, which was founded in 1978, has approximately 2,127 stores and 355,000 employees.

Exercises
  1. Nardelli's severence package works out to about $_________ per year of service.

  2. Home Depot's employee-to-store ratio is _______:1.

  3. Nardelli's severance package, excluding the "cash payment" and the acceleration of unvested deferred stock awards," totals $__________________.


Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 05 January 2007

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