Atlanta, GA, Apr. 13--Home Depot Inc. paid Chief Executive Robert Nardelli $2 million in salary and $4.5 million in bonus in 2003, roughly the same as it paid him in 2002, according to the company's proxy filing on Monday with the Securities and Exchange Commission.
Nardelli also received "other annual compensation"--a category that includes loan forgiveness and tax payments--of $4.7 million in 2003, compared with $5.3 million in 2002.
For 2003, Nardelli was also granted restricted stock valued at $10.6 million, compared with a grant valued at $8.5 million for 2002; and options on 565,000 shares, compared with a grant of 750,000 options in 2002.
The company also reported compensation related to various contributions, grants and insurance payments of $498,946 in 2003. That figure compared with a figure of $393,990 in 2002.
Home Depot also said Monday that it expects to spend $3.7 billion on capital projects in the fiscal year ending Feb. 1, 2005.
The company said in its annual report filed with the SEC that 57% of its anticipated capital spending will be for new stores, 22% for store modernization, 8% for technology and 13% for other initiatives.
In fiscal 2004, the company's capital spending totaled $3.5 billion, compared with $2.7 billion in fiscal 2003. This increase was due to a higher investment in store modernization, technology and other initiatives, the filing said.
As of Feb. 1, Home Depot said, the company had $2.9 billion in cash and short-term investments.
The company believes that its current cash position and cash flow generated from operations will be enough to complete its capital expenditure programs and any required long-term debt payments through the next several fiscal years.
In addition, Home Depot has funds available from its $1 billion commercial paper program and the ability to obtain alternate sources of financing if required, the filing said.
Also in the filing, Home Depot said it expects its comparable store sales in fiscal 2005 to increase 3% to 6%.
The home-improvement company said it expects same-store sales to benefit from the introduction of innovative new and distinctive merchandise, as well as positive customer reaction to its store modernization program.
The program, which includes merchandising resets, complete store remodels and new signing, lighting and flooring packages, is enhancing customers' shopping experience, the filing said.
Home Depot also said it plans to open 175 stores in fiscal 2005, including 14 stores in Canada and nine in Mexico.
