I remember a heated discussion about someone putting an "extra" nut on threaded rod (or something of that nature) in hope that casher won't notice and person next to him was outraged by this dishonest behavior. I might be wrong on exact details here.
Anyway it was a very heated discussion with one side claiming that these "crooks" raise the price of goods at the store for all the "good guys". Another side was defending "crooks" and ridiculing "good guy" as been a tight ass.
Here is the article on Home Depot CEO leaving due to company's poor stock performance and taking $210 mil as good buy package.
That's THE real guy why makes HD prices go up and quality of service and good go down!
As a shareholder in GE, let's just say there may be a reason Immelt was chosen over this guy to be the chairman, back in 2001. I'm biased as I worked for GE Medical Systems at the time, but Immelt is Good People, and this other guy, is just VERY ambitious.
So. As I was saying. Dude is way the fark ambitious, as opposed to talented. So what's your point? That GE is smarter than Home Depot? Um, yeah, which one does Joe Average know and respect more?
I don't understand the point of your post. GE's castoffs don't matter to much of anyone, far as I'm concerned. Disclaimer: I own stock in, and work at, a GE business. Which produces damn fine product.
Chris is right I never mentioned GE. My point was that there a lot of executives who "work hard to make a company succeed and are very dedicated to company and it's people" but when they get booted loot company.
Right, that would have been me that did, Chris. You can count the little arrrows at the start of the lines and work that out, you see. My point, which you missed, is that the guy was passed over for the top spot at GE which he thought he had wrapped up. Then he got to HD, and the colors he showed at GE came out even more, and they let him go.
Are you just contrarian, Chris, or really as clueless as you make yourself out to be?
Well, TMT's premise is, as usually, completely wrong. A CEO's job is to make the stock price go up, period. If he succeeds, reward him. If he doesn't, kick his ass out.
Remember, that is the man that created Home Depot. His dream and risk. Constant bantering from everyone at every station so it seemed.
He isn't young now and deserves a nice retirement.
Martin
Martin H. Eastburn @ home at Lions' Lair with our computer lionslair at consolidated dot net TSRA, Life; NRA LOH & Endowment Member, Golden Eagle, Patriot"s Medal. NRA Second Amendment Task Force Charter Founder IHMSA and NRA Metallic Silhouette maker & member.
Well, I hope the poor son of a bitch can limp by on his $210 million bucks. Probably never live in the lap of luxury they way I do on social security, though. How could anyone possibly live in comfort on only ten million or so? (Which would still be beyond this dude's worth).
You know-----all of us in the States (and maybe elsewhere, too) need a wakeup call. At every turn, we have permitted unearned money to change hands, driving up the cost of goods and services to the point where we can't compete in the world market. I don't give a damn what the smart economists say, things are running about as smoothly as a pig on stilts.
Oh, my God! What did I just say? I expect Ed is going to post another of his "you're stupid" comments. sigh!
I wish I could find the link but I read a while back that 1/2 of the profits of many corporations are consumed by top level excecutives.
When I get those proxys each year for voting stock, I'd like a chance to vote on compensation for the officers of the company. The boards of directors are nothing other than interlocking old boys clubs that sratch each others back rather than perform a fiduciary duty for the shareholders.
Also, since a huge amount of retirement investments exist as stock in various funds, I wonder how hard these fund managers look at compensation amounts.
Employees who traveled for HD were getting reimbursed 37 cents-per-mile at a time (last year) when the IRS said it cost 48 cents-per-mile to operate a vehicle......a discrepancy of 11 cents-per-mile.
They would say, "Oh, you can deduct the other 11 cents on your taxes." Truth is, you didn't pay the taxes on that extra 11 cents. The 11 cents STILL came out of your pocket.
I figured it cost me about $3.00 per-hour out of my own pocket to travel for them.
AND.....
Employees who traveled for HD were NOT paid time-and-a-half for travel time that brought them over 40-hours-per-week. It was entirely possible to "work" the allowed 40 hours, then "travel" another 40 hours in a single week - ALL for straight hourly time.
I know this from personal experience - having worked as a trainer for HD.
I'm sure all those 11cents-per-miles, and half-times - when added up - contributed greatly to Mr. Nardone's golden parachute.
My resignation letter pointed out specifically that I was in no position to subsidize HD either in lass-than-standard mileage reimbursement or in hourly compensation concessions.
Absolutely not. He was one of the three in position to take Welch's job as CEO. When Immelt got the job the other two found lucrative CEO jobs elsewhere. Both have since moved on.
This thread has been interesting in that a lot of people have opinions about a $210 million "separation package" and none apparently are familiar with the facts.
The facts are that there was no $210 million separation package. All of you that have been yapping about that haven't the slightest idea what the facts are.
Nardelli's track record at GE was good enough to put him in contention for the CEO job after Welch's retirement. When Immelt got the job Nardelli was a hot prospect for a CEO job elsewhere. GE has a reputation for producing good managers under Jack Welch. At the time that HD hired him the consensus was that they were fortunate to get him. One could do quite well by investing in companies that hired GE executives as CEOs.
Now for the facts...Most of that $210 million is wrapped up in his original hiring contract and is not a going away present for failure. HD was obligated by a hiring contract that couldn't be voided by the current board of directors to pay most of this $210 million. According to the Wall Street Journal about $18 million was negotiated in the severance package. Now that is a lot of money but a long way from the $210 million that is creating such an outburst
As part of the recent HD negotiations Nardelli signed a non-compete agreement and agreed not to solicit HD employees or customers for four years. I suspect that a fair amount of that original contract compensated Nardelli for a bundle of stock options and other compensation he would be leaving behind at GE. It is the original board that should be faulted not the current board. The general consensus at the time of hiring was that HD made a good move. Hindsight indicates that Nardelli's lack of experience with a consumer goods business and his failure to answer questions concerning HD's stock price were serious flaws. There was no outcry at the time Nardelli signed the original contract which was disclosed in the annual HD proxy.
I worked at GE for 33 years and went through a few of those 10% reductions letting employees at the bottom of the totem pole find other jobs. I also worked directly with Jack Welch on occasion. If you did a good job Jack was a pretty good boss. If not you probably wouldn't be there next year.
The removal of deadwood every few years keeps employees attention on their work. No one is perfect at hiring and if this policy were followed in our school systems I believe much of our problems with education would disappear.
GE was a great company to work for and to retire from. The GE pension fund has had a huge surplus ever since I started working there over 50 years ago. GE has not raided the pension fund as so many other companies have done by converting to defined benefit plans. In fact in
20 years of retirement I have had three pension increases and one recent year received 13 checks instead of twelve. GE was not obligated to increase any of these benefits.
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