They call him the most-overpaid CEO in history, which may or may not be true but either way it isn’t very flattering. During Big Bob’s tenure, Home Depot’s stock lost 8% of its value and the store gained a reputation for crappy customer service and long lines leading to registers staffed with unhelpful people. Why? Big Bob wasn’t concerned with the business he was in, and it showed in his management philosophy:
What was Nardelli’s strategy?
It was a concept he called “The three Es.”
* Enhancing the core.
* Extending the business.
* Expanding the market.
Conspicuously missing from Home Depot’s strategy? Customer Service. Big Bob cut higher-paid more knowledgeable workers in favor of part-time help. He tried to start a building supply business. Together, Home Depot and Lowe’s have only 18% of the market share, yet Big Bob was putting the stores on hold to look for greener pastures. What was he thinking? It hardly matters. He’s got a $210 million exit package, and you don’t. —MEGHANN MARCO