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Thursday, November 02, 2006

Home Depot (HD): Nardelli Going to a Performance-Oriented Pay Structure?

Charlie Gasparino on CNBC just made an interesting comment on televsion. He stated that Home Depot's (HD) compensation committee is looking to liberalize its pay package of Chairman & CEO Bob Nardelli.

The compensation is reportedly going to be set to a range, and will likely come in at the lower part of that range. Gasparino inferred that this would keep that $37 million pay of last year lower down to a "more reasonable" level. Keep in mind that this won't go entirely incentivized, but the comments also noted that much of his overall compensation is tied to stock options that are underwater.

While this isn't the company getting rid of Nardelli, this is at least one of a dozen steps in the right direction that the company can take. This may not keep protesters from wearing chicken uniforms outside of corporate meeting locations, but it's a start nonetheless.

There is also no reason to feel sorry for Mr. Nardelli, because he will certainly make far more than all of the protesters combined. It is also no secret that he is one of the least liked CEO's on the street right now. If any of these figures here are wrong, well "What's a few milllion among friends?".

Home Depot (HD), or as Cramer calls it "The Despot," is down 0.3% at $37.24 on the day. The 52-week trading range is $32.85 to $43.95.

Jon C. Ogg
November 2, 2006

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