The Home Depot, Inc. (NYSE:HD) has made great strides in improving its image as a more shareholder-friendly company.

When former CEO Robert Nardelli resigned, it was widely reported that floor-level employees erupted in cheers. Then, investors cheered when the new CEO declined the board's first offer saying that it was too much money. He agreed to a relatively modest compensation package that does not guarantee him any severance package. Yesterday, Relational, an activist fund that owns 1% of the company, agreed to drop its proxy fight and took a seat on the board.

Today the Financial Times referred to a "new culture of improved corporate governance and greater focus on shareholder value." Highlighting the focus on shareholder value, new CEO Frank Blake's pay package is closely tied to the performance of the company's stock.

While none of this really has a lot to do with Home Depot the company, the operating performance has never really been a problem. Nardelli was able to grow earnings well during his tenure. With better corporate governance now in place, the stock may be gold.