Two more Home Depot executives are leaving
Home Depot Inc.'s top lawyer and its head of personnel are leaving the company less than a month after the ouster of former Chief Executive Bob Nardelli amid investor criticism of his pay.
The departures of Dennis Donovan, head of human resources, and general counsel Frank Fernandez are effective Feb. 14, Atlanta-based Home Depot said Thursday.
Shares of Home Depot rose 34 cents to $41.08.
Donovan and Fernandez were recruited to the world’s biggest home-improvement retailer in 2001 by Nardelli, 58, who left the company Jan. 2 amid criticism of his $225-million pay package over six years while the company’s stock fell 7.9%. New Chief Executive Frank Blake, 57, will receive about a quarter of Nardelli’s 2005 pay if he meets performance goals.
Fernandez and Donovan each received a cash severance of $2.96 million, company spokesman Jerry Shields said. Each executive’s options vested immediately as part of the separation agreement, Shields said. Donovan’s total options value is $17 million and Fernandez’s is $16.5 million, he said.
Donovan and Fernandez were the second- and third-highest-paid Home Depot executives in 2005 behind Nardelli.
Donovan received compensation worth $6.67 million in 2005, including salary, bonus, options and long-term incentives. Fernandez received $6.02 million. Some of that pay was dependent on them remaining with the company for a number of years.
After Nardelli’s departure, Home Depot’s board adopted policies to appease shareholders critical of its oversight.