FT v WSJ, ex parte Nardelli
Friday and Saturday last week, the Wall Street Journal (subscription required) and the Financial Times, respectively, published opposing views and arguments in their op-eds regarding the departure of Home Depot Inc. (NYSE: HD) President and CEO Robert L. Nardelli and his $210 million pay.
Who said what:
Wall Street Journal
[B]y the way, the terms were disclosed in the annual Home Depot proxy. That contract can’t be abrogated now simply because the board has concluded it made a mistake. Of that $210 million figure, more than $180 million is owed to Mr. Nardelli as part of his original job offer. […] [T]he beginning of wisdom would be for the tub-thumpers to stop confusing “severance” with hiring pay.
Financial Times
CEO salaries do not come from the pockets of ordinary employees but from the pockets of shareholders, and it is the shareholders who need to take a stand against rewarding failure. [US shareholders] could do with a UK-style non-binding vote on executive pay.
What’s more: See Ted Frank’s take at PointofLaw.com (one day prior to the Journal’s), Kevin LaCroix’s at The D&O Diary and Home Depot’s own words.