Nardelli to receive US$210 million severance
Bob Nardelli quit as chairman and chief executive of US DIY giant Home Depot yesterday after a six-year tenure, during which sales and profits increased, but its share price fell.

Home Depot's shares closed up 2.3 per cent yesterday, but Nardelli's abrupt departure will see him receive a severance package of about US$210 million (£108.1 million) under the terms of his contract.

Nardelli's time in charge was characterised by controversy over the scale of his pay, his management style and a recent inquiry into stock option backdating. Before joining Home Depot, he was a protégé of Jack Welch, the legendary former General Electric (GE) chief executive .

Last month, Home Depot said it would oppose a shareholder group's request for an independent committee to review the company's strategic direction. Investment firm Relational Investors said in a letter to Nardelli that it wants 'to reverse the company's chronic inferior stock price performance experienced since 2000.'

Nardelli was replaced with immediate effect by Frank Blake, Home Depot's vice-chairman since 2002, who is another GE veteran.

In a statement, Nardelli said: 'I believe that I leave a stronger and more resilient company than when I arrived [in 2000].'

His departure is likely to revive the long-running speculation that Home Depot may bid for Kingfisher-owned UK DIY retailer B&Q.

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