Home Depot’s “Embattled” CEO “Big Bob” Resigns

In a move sure to please the readers of this particular blog, Robert “Big Bob” Nardelli the CEO of Home Depot has resigned today. From the New York Times:

    “Under Mr. Nardelli, the Home Depot shifted its focus somewhat away from selling lumber and lights to do-it-yourself consumers and more toward providing pipe and cement to contractors and professionals.”

This goes a long way toward explaining the mountains of angry emails about Home Depot we receive each week . Under Mr. Nardelli the company spent spent $7 billion beefing up Home Depot Supply, the unit that caters to the building trade. This strategy did not improve the company’s stagnant stock price. The news of Nardelli’s departure had stocks up sharply during early trading. —MEGHANN MARCO

Embattled Chief Executive Resigns At Home Depot [New York Times]

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  1. Trai_Dep says:

    My Home Depot annecdote.

    Needed a new shower fixture. Picked up one of those handheld WaterPik vibrating (no jokes!) ones. Regular price: $35. Sales price: $11.

    Holy COW what a deal!

    Snagged one, waited in line. Waited in line. Waited in line. Watched 4 employees chatting, laughing, sipping coffee with only 2 registers of 10 open. Waited in line.

    FINALLY got to cashier. Scanned my fixture. $38.98!!

    They “accidently” forgot to update their SKU. (cough).

    Since it was such a noticeable difference, and was the sole item, I quickly caught it. Cashier tried the, “Are you sure you didn’t misread the shelf – I haven’t heard of that sale…” before she paged someone to do a price check.

    Waited. Waited. Waited. (Group of four employees joined by a fifth, bringing more coffee and pastries). Waited..

    Went off on my own to find someone at plumbing to drag back to cashier to verify price.

    Find the paged employee, Nick, chatting animatedly with another gaggle of employees, a good five minutes after being paged. Interrupt his valuable chatting time to check price and follow me back to cashier..

    (for those keeping score: 9 employees socializing for roughly half an hour)

    Spend another 20 minutes as cashier receives painfully slow tutorial on how to update SKU prices.

    FINALLY walk out of place after paying price that store shelves said. Picked up another one to give as x-mas gift ($10 for a $30 item! And a GOOD item!!)

    Realized on drive home, Home Depot is the PERFECT place to pull a Price Scan scam. Most purchasers buy multiple items. Many purchasers (contractors) buy items that someone else pays, often months later and bundled with dozens of other receipts once the project is completed. Time = money for contractors, so they won’t endure the half-hour to hour wait it takes for Home Depot to correctly charge the price they advertise.

    Sweet, sweet scam. If you’re Home Depot.

  2. Negative says:

    Does this mean that they are going to bring back the at-least-half-knowledgeable employees want to assist you and that could answer questions?

    I’m tired of the ones that give you a blank stare followed by “Ummmmmm… Ummmmmmm…”?

  3. Frank Grimes says:

    Don’t forget becuase corporate boards are insane and are hell bent on spending shareholder equity, Big Bob could be walking away with $210 MILLION! Yup, stock tanks, lose market share, p/o most consumers and get your ass kicked by Lowes and walk away with the GDP of Mali.

  4. Frank Grimes says:

    He’s also (potentially) going to walk away with $210 MILLION. Nice job by the HD board. Its funny, Rush and his ilk spend a lot of time slamming “welfare cheats” and “Katrina victims” buying TV’s with their aid, but nobody seems to have a problem with a grossly incompetent CEO bludgeoning his company and then being allowed to walk away with a mounting of cash.

  5. Keter says:

    When CEOs screw up and get canned… *cough* …suffer a loss of investor confidence and are allowed to resign, who pays for the losses and the squandered golden parachute? The BOD?

    Hell, no. You and me. The employees who take it in the shorts when their benefits and incentives are taken away. The customers who receive less service and are forced to pick from ever crappier imported merchandise.

    The GOOBs (good-ol-boys) have a sweet racket going for themselves, and this includes the major investors and BOD members, who are usually C-levels in other companies. They have no incentive to set a precedent of punishing one of their peers because they want to be protected similarly when *they* screw up.

    FWIW, Nardelli actually tried to help fix their customer service issues using online feedback. Unfortunately, they didn’t finish the necessary follow-through, leaving a lot of customers more PO’ed than before they had ‘hope.’ So the bottom line of Nardelli’s tenure was probably that he couldn’t finish what he started.

    PS: Don’t like how a company does business? Don’t do business with them. If enough of us don’t buy from companies like Home Depot and Cisco, it will show on their bottom line. Remember, there are more of us than them, and if we choose to spend (or not) together, suddenly we become the megamultinational corporate entity. ;o)

  6. Bobg says:

    Wow, a $210 million severance package! Home Depot you should have hired me. I would have resigned for 1/10th of that.

  7. galman says:

    OK, NOW I know why we don’t have help in our stores!!! I work at Home Depot. Several of us (Employees – That work, knowledgeably answer questions, and STILL PUT CUSTOMERS FIRST) Question the HR department about short staffing only to be told that we are fully staffed, then when we find what we call a pumpkin patch of non working employees we are accused of being negative to CO-associates! Well, the money needed to hire the staff is and has been in Nardelli’s bank. We have suffered cuts to staff, cuts in benefits and so many rules-that if you blink wrong you’re FIRED. while pumpkin patch attendees are patted on the back because they don’t speak the truth and their noses are a little darker than the rest of their face. Let’s hope that Frank can bring back the old home depot of customer service!