Robert Nardelli's disregard for shareholders was extreme even by US standards, as was the mismatch between his performance and reward. The defenestration of this high handed chief executive from Home Depot last week thus had all the marks of a symbolic turning point towards greater shareholder accountability.
His departure comes after a push in the same shareholder-friendly direction by the Paulson committee on capital market regulation. And it is noteworthy that Barney Frank, the incoming chairman of the House financial services committee, has hinted that having shareholders vote on chief executive pay may be the way to address the fat cat pay issue.
By contrast, continental Europe seems to be losing impetus on the corporate governance front, with poison pills making a comeback. The latest case concerns ThyssenKrupp whose annual meeting on January 19 includes a motion to give disproportionate representation on the supervisory board in relation to the share stake of the Alfried Krupp von Bohlen und Halbach foundation. This comes against a background of hostile bids and consolidation in steel.
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