Home-Depot Inc. (NYSE:HD) will need an army of PR consultants to restore its tattered public image among investors and the public. I say "army" because one PR agency alone can't take on that Herculean task.
Former CEO Robert Nardelli set new standards for boorish behavior toward investors at the chain's last annual meeting. Investors are outraged at his arrogance and now are trying to stop the company from paying him a $210 million golden parachute.
Critics argue that Nardelli was overpayed, especially when factoring in the poor performance of its stock. House Financial Services Chairman Rep. Barney Frank said Nardelli's severance package was "further confirmation of the need to deal with a pattern of CEO pay that appears to be out of control," Reuters said.
Home Depot is in a pickle with regards to Nardelli's pay. It's also found away to turn off consumers as well. I haven't set foot in my local Home Depot in years because the experience of shopping in Lowe's Companies Inc. (NYSE:LOW) is so much more pleasant. The Lowe's is about 20 miles further from my house than the Home Depot.
In the coming weeks, PR firm after PR firm will be pitching their services to Home Depot. There will be a reputation-building advertising campaign in the spirt of what Wal-Mart Stores Inc. (NYSE:WMT) is doing. Executives will probably hit the road to New York and Boston and listen to shareholders yell at them. Then the public will move onto the next scandal.
--Jonathan Berr is editor of http://www.desperateinvestors.com.



