In 2006, the shareholders upset compensation CEO Robert Nardelli and falling prices of shares Home Depot, relational investors decided to further investigate the situation. As experts in turning around underperforming and undervalued companies, directors relational saw an opportunity for Home Depot, to improve its stock through changes in strategy, corporate governance and capital allocation. In particular, relational felt Nardelli development plan for the company caused a drop in share price. Relational decided to invest in Home Depot and is intended to initiate a proxy fight, if the board does not review the strategy of the company. Soon after, Nardelli left Home Depot and advice offered relational board seat. This case describes a relational analysis of the problems in the Home Depot, why they decided to invest, and how they went about making their recommendations have been implemented. "Hide
by Jay W. Lorsch, Caitlin Simpson Source: Harvard Business School 10 pages. Publication Date: March 18, 2009. Prod. #: 409076-PDF-ENG
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