Home Depot tightens pay approval process

Home Depot Inc., which ousted Chief Executive Robert Nardelli after investor criticism of his pay, tightened the approval process for future CEO compensation packages.

The CEO’s wages will now require the approval of two-thirds of the board’s independent directors, up from 50%, Atlanta-based Home Depot said Monday in a regulatory filing.

Home Depot’s board awarded Nardelli $225 million in compensation during his six years running the company. He was replaced Jan. 2 by Vice Chairman Frank Blake. The board gave Nardelli a $210-million separation package, which included compensation and benefits earned but not received.

Ten of the 12 directors are considered independent, so the new requirement means seven members would have to approve the CEO’s pay package, two more than currently needed.

The compensation restrictions were approved as an amendment to bylaws Thursday, Home Depot said in its filing with the Securities and Exchange Commission.