High-flying executives' remuneration is back on the radar in the US, writes Mark Coultan.
With a share price 8 per cent below what it was five years ago, and sales down 5 per cent on last year, it might not seem surprising that the chief executive would get the chop. But what shook the company, and the market, was the size of the farewell present: $US210 million ($NZ303.7m).
Robert Nardelli has been the poster child for excessive executive remuneration for some time. His departure from Home Depot, America's second-largest retailer, is now a case study in CEO Lotto.
As one union official was quoted as saying: "I wouldn't even say golden parachute. I would say platinum helicopter."
Despite the declining financial indicators, it was an argument over his pay that finally ended his career at the big-box (think Bunnings warehouses) retailer.
Nardelli's package had long been a lightning rod for criticism. In his five years in the job, he had drawn $US63.5m in salary and bonuses, which included $US21m in forgiven loans. Home Depot even paid his taxes. His previous year's compensation was $US37m. Only $US2.1m was salary; the bulk was options and restricted stock.
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