IMD-3-1908 © 2008
Manzoni, Jean-François; Barsoux, Jean-Louis
The case covers Bob Nardelli's 6-year period at Home Depot from 2000-2006. This trouble, allied to Nardelli's pay bundle (worked out at a time of financial ecstasy when he was one of the 2 most desired executives in America), significantly strained his relationship with the business's shareholders. These were changed from "lovefests" under his predecessor into significantly fractious celebrations - culminating with a dreadful conference in May 2006 that indirectly led to Nardelli's resignation at the start of 2007.
The case thinks about Nardelli's relationship with 2 essential stakeholders-- the board and the shareholders-- as well as concerns of self-management. At very first view, this case can be checked out as a story of greed and weak business governance - an exceedingly greedy CEO/Chairman who controls the board into offering him high payment and decreasing efficiency pressures. Knowing goals: The core problem is Bob Nardelli's growing problems in dealing constructively with the business's shareholders - and their misconception of his function (as a modification representative) and inspiration (presuming it is just about cash).
Subjects: Leadership; Corporate governance; Board; Shareholders; Compensation; Annual meetings; Labeling; Self-fulfilling processes; Derailment; Self-management; Set-up-to-fail syndrome
Settings: North America; Retailing in the home improvement sector; 364,000 employees; 2000-2006
Related Case Solutions & Analyses:
RBC Financial Group–The Equator Principles in Qatargas II LNG Project
Mall of America (A)
Delivering Customer Centricity
Brazos Partners and the Tri-Northern Exit
Note on Responsibility Accounting
Smith Family Financial Plan
Assured Guaranty
Apple Inc. in 2015
Valuation And Corporate Finance Transactions
Private Equity Finance Vignettes: 2014
