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Home Depot to Alter Vote Rule

From Bloomberg News

Home Depot Inc. said Tuesday that its directors would be elected by a majority of votes cast, starting at next year’s annual meeting.

The proposal was approved in May by 56% of shareholder votes at Home Depot’s annual meeting. Previously, directors were elected under a plurality standard, meaning the candidate who received the most votes won.

Chief Executive Bob Nardelli was criticized by some shareholders for his compensation and director accountability. Nardelli was the only Home Depot director to attend the meeting.

The Atlanta-based company has since said all directors will attend next year’s annual meeting. The majority vote standard for director elections will take effect at that meeting in May. Elections in which there are more nominees than director openings will still be decided by plurality, the company said.

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