Atlanta, GA, January 9, 2007--Home Depot said the company's bylaws had been changed to require that two-thirds of independent directors approve the compensation of the chief executive.
Previously, the bylaws required that a majority of independent directors approve the CEO's pay.
The change comes in the wake of last week's abrupt departure of Robert Nardelli as Home Depot chairman and chief executive by mutual agreement with the board. Home Depot said in a regulatory filing that its directors approved the bylaw change on January 4, two days after Nardelli's exit.
Nardelli, who joined Home Depot from General Electric in late 2000, had drawn heavy criticism from shareholders who charged that his pay was hefty in light of the retailer's stock performance.
Frank Blake, the former GE executive who was named Home Depot's new CEO and chairman, said in an internal memo on Monday that Harvey Seegers, president of Home Depot Direct, and John Campi, senior vice president for global sourcing and vendor management, announced their plans to leave the number one home improvement chain to pursue other opportunities.
In the wake of the departures, Steve Skinner will lead Home Depot Direct, which handles online and catalog sales, and Brian Robbins will lead global souring and vendor management, the memo said.
Skinner and Robbins will report to Craig Menear, who was given responsibility for all merchandising initiatives last year.
The memo also said that Joe DeAngelo, who was named chief operating officer last week, would have expanded duties for the retail business. Vice presidents of global supply chain, home services and asset protection now report to DeAngelo, who joined Home Depot in 2004 from tool maker Stanley Works and heads the supply business geared to professional contractors.
Chief financial officer Carol Tome assumes leadership of real estate, growth initiatives, credit and other related functions, the memo added.
