Nardelli Resigns as CEO of The Home Depot

Facing heat from investors for earning $225 million while the national home improvement retailer’s stock withered, Robert Nardelli has reached an agreement with The Home Depot to resign as its president, CEO and chairman, effective January 2. Frank Blake, formerly the company’s vice chairman of the board of directors and executive vice president, succeeded him to the top leadership position.

“I am honored to lead this exceptional company and build on Bob’s significant achievements,” Blake says. “The Home Depot has a strong core business and exciting opportunities in its adjacent businesses. I believe the company continues to have tremendous potential for growth and that we have an exciting future ahead of us.”

Nardelli and the company negotiated a separation agreement that will pay him for entitlements included in his pre-existing employment contract, signed in 2000. In all, these considerations equal about $210 million. Nardelli has agreed to not compete with the company for one year, not to solicit employees or customers of the company for four years, and other restrictive covenants, the company reports.