Home Improvement: Home Depot's Downward Spiral

Those of you who shop at or hold considerable stock in Home Depot may want to start rethinking that:

An internal review at The Home Depot Inc. found about $10 million in unrecorded stock option expense, the nation's largest home improvement store chain said Friday. The Atlanta-based company said the amount is not material and it does not plan to restate any of the past year's financial results.

Hmm, wonder where those extra monies might have ended up? Perhaps in the supremely generous pay package of CEO Robert Nardelli?

I pause to quote a scathing entry on Nardelli from the AFL-CIO blog:

Maybe Nardelli learned how to guarantee his retirement security by watching two people with whom he has worked closely in the past: Jack Welch and Richard Grasso....Welch, who was famous for sending jobs offshore to save labor costs—and bragging about it—took away such a lavish retirement package that the U.S. Securities and Exchange Commission (SEC) fined GE for hiding the details of the package from investors.

Truly, one has to wonder if the apple doesn't fall very far from the tree at all.

Posted at June 16, 2006 05:22 PM

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Those of you who shop at or hold considerable stock in Home Depot may want to start rethinking that: An internal review at The Home Depot Inc. found about $10 million in unrecorded stock option expense, the nation's largest home improvement store chain said Friday. The Atlanta-based company said the amount is not material and it does not plan to restate any of the past year's financial results. Hmm, wonder where those extra monies might have ended up? Perhaps in the supremely generous pay package of CEO Robert Nardelli? I pause to quote a scathing entry on Nardelli from the AFL-CIO blog: Maybe Nardelli learned how to guarantee his retirement security by watching two people with whom he has worked closely in the past: Jack Welch and Richard Grasso....Welch, who was famous for sending jobs offshore to save labor costs—and bragging about it—took away such a lavish retirement package that the U.S. Securities and Exchange Commission (SEC) fined GE for hiding the details of the package from investors. Truly, one has to wonder if the apple doesn't fall very far from the tree at all.