Home Depot Inc. has announced Chairman and CEO Robert Nardelli has left the retailer under a decision reached with the board of directors, effective immediately. The resignation comes as Home Depot is facing a regulatory probe over options pricing practices and investor scrutiny over falling earnings. An internal review of its options practices concluded there was no intentional wrongdoing by any person who was a member of the management team or board. Nardelli has been succeeded by VC Frank Blake. Nardelli will receive a severance package of about $210 million. HD shares are currently up 5% to $42.03 in pre-market trading.
• Sources: Press Release, Reuters, AP,
• Related commentary: Share Improvement in Store for Home Depot, Lowe’s, Don't Scapegoat Bob Nardelli for Home Depot's Stagnant Stock, Home Depot's Dividend Increase: Not What Bob Nardelli Wants You To Believe, Jim Cramer's take on the resignation: sell HD and buy LOW! (video)
• Potentially impacted stocks and ETFs: The Home Depot Inc. (HD). Competitors: Lowe's Companies Inc. (LOW), Fastenal Co. (FAST). ETFs: Retail HOLDRS ETF (RTH), Consumer Discretionary SPDR ETF (XLY), Vanguard Consumer Discretionary VIPERs (VCR)
Seeking Alpha's news summaries are combined into a pre-market briefing called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only a few seconds to sign up.