LEADERSHIP AND CHANGE

Leadership and Change

Leadership and Change

Stakeholders for Home Depot

Home Depot assured that the company is the vision described in the case of "being one of the most successful retailers in the next millennium," which is also defined by the direction of Home Depot as "the most successful. Will be the retailers among other things, can increase its profitability in global markets. "The direction of Home Depot also has the intention of having success in areas where they have a business and use this base to expand into other markets.

There were a lot of media in the former CEO of Home Depot, Nardelli also be awarded. Today, Home Depot announced it would pay the new CEO of "only" $ 8.9 million. And 89% of which is based on performance.

Home Depot, under fire from critics who also accused the former chief executive Robert Nardelli said Wednesday in 2007 to pay its new CEO was valued at $ 8.9 million, with 89 percent of this risk on the basis of the results of the company.

This gives the impression to be an excellent model of the agency problem to discuss. Former CEO Compensation of $ 210 million is because he had the advantage of information in assessing their performance. The arguments that say this is what the market will bear. "One flaw I see with this argument is that market theory assumes that equality of information. Because the former CEO pays was separated from the reality market performance of the company, which took the agency problem. Home Depot now, as an organization is facing the wrath stakeholders. To encourage contributions, has changed its policies.

CEO manage the portfolio of stakeholder demands

Home Depot's new CEO has plans to expend the beginning of its mandate to review beleaguered company. New CEO Frank Blake ...