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This post is written as part of AOL Money & Finance's Best & Worst 2006. Vote for Bob Nardelli or check out the other overpaid CEOs.

Former General Electric Company (NYSE: GE) executive Bob Nardelli lost out to Jeff Immelt in the race to succeed Jack Welch as CEO. And The Home Depot Inc. (NYSE: HD) shareholders would have been better off if Nardelli had repotted himself elsewhere.

Since Nardelli joined Home Depot as CEO in December 2000, HD is down 40% compared to a 120% increase for competitor Lowe's Companies Inc. (NYSE: LOW). In the last five years, Home Depot's revenue grew at a 12.3% compound annual growth rate to $90.1 billion and its net income increased at a 17.7% annual rate to $6.1 billion -- not bad, but a far cry from Lowe's 18.2% revenue growth and 27.8% profit growth during the same period.

And all this inferior performance at Home Depot would not be so bad if Nardelli weren't so egregiously overpaid. He received roughly $30 million in 2005, almost six times the $5.5 million that Robert Niblock, Lowe's CEO, took home in 2005.

Investors in the market for bargain CEOs should stay away from Home Depot.

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm, and a Professor of Management at Babson College. He owns GE stock and has no financial interest in Home Depot or Lowe's.

Best & Worst: Bob Nardelli builds himself a fat pay plan at Home Depot originally appeared on BloggingStocks on Tue, 05 Dec 2006 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bob NardelliBobNardelliexecutive compensationExecutiveCompensationGEGeneral ElectricHome DepotHomeDepotJack WelchJackWelchJeff ImmeltJeffImmeltLowe'sNardelliRobert NardelliRobert NiblockRobertNiblockTue, 05 Dec 2006 18:00:00 EST