Activism
Home Depot agrees to investor representation
Home Depot has reached an agreement with a large shareholder, Relational Investors,
which will see the investment fund granted a seat on the board in return for
dropping its proxy contest.
The US home improvement retailer has been the subject of
considerable negative press over the $210m payoff awarded to the former chairman
and chief executive Robert Nardelli.
Relational’s proxy challenge sought to address Home
Depot’s poor share price, which it attributed to a combination of deficiencies
in governance, strategy, operations and capital allocation.
David Batchelder, Relational’s representative, will be
appointed to the company’s compensation and audit committees. Home Depot has
agreed to nominate and support Relational’s representative for the next three
years.
Batchelder praised the board for demonstrating
accountability by agreeing to work with shareholders, and for the corporate
governance improvements already made since Nardelli’s departure.
Links
Home Depot
Relational Investors
March 2007 |
