Robert Nardelli

Robert L. Nardelli (born May 17, 1948, in Old Forge, Pennsylvania) is the newly appointed Chairman and Chief Executive Officer of Chrysler and the former Chairman, President, and CEO of The Home Depot, serving from December 2000 to January 2007. Prior to that, he was one of the top four executives at General Electric. On August 5, 2007, it was announced that Nardelli will be appointed by private-equity group [[Cerberus]as the Chairman and CEO of Chrysler.

Nardelli received his Bachelor of Science in business from Western Illinois University and earned an MBA from University of Louisville.

He joined General Electric in 1971 as an entry-level manufacturing engineer. By 1995, he had risen to President and CEO of GE Power Systems, also having the title of GE senior vice president. Nardelli was often known as "Little Jack", after his mentor Jack Welch, whom Nardelli had ambitions to succeed as CEO of GE.

When Jack Welch retired as Chairman and CEO of General Electric, there was a lengthy and well-publicized succession planning saga. Nardelli competed with James McNerney and Jeff Immelt to succeed Welch. With Immelt winning the three-way race, Nardelli and McNerney left GE (as was Welch's plan). About 10 minutes after Welch let him go, Nardelli received a job offer from Ken Langone who at the time was on the boards of both GE and Home Depot.

Nardelli became CEO of The Home Depot in December 2000 despite having no retail experience. Using the "Six Sigma" management strategy from GE, he dramatically overhauled the company and replaced its freewheeling entrepreneurial culture. He changed the decentralized management structure, by eliminating and consolidating division executives. He also installed processes and streamlined operations, most notably implementing a computerized automated inventory system and centralizing supply orders at the Atlanta headquarters. Nardelli was credited with doubling the sales of the chain and improving its competitive position. Revenue increased from $45.7 billion in 2000 to $81.5 billion in 2005, while profit rose from $2.6 billion to $5.8 billion. While this was a slower rate of growth than Home Depot had previously experienced (the company doubled in size every 4 years from 1979 to 2001), it must be noted that the high growth rates were largely due to rapid expansion. As the company was reaching its retail limit in the US, Nardelli came in to help the company transition into a mature business. Some have criticized him for not maintaining the growth that the company had previously experienced, pointing to his huge salary as a sign that he was actually supposed to bring new innovation to the company in order to help it maintain its historical growth. Others argue that without Nardelli's expertise, the company would not have had even the growth that did occur.

The company's stagnating share price, Nardelli's results-driven management style which turned off both employees and customers, and his compensation eventually earned the ire of investors. Despite having received the solid support of The Home Depot's board of directors over the past few years, Nardelli abruptly resigned on January 3, 2007 by mutual agreement with the company. His severance package was estimated at $210 million. He was succeeded by The Home Depot vice chairman and executive vice president Frank Blake. Blake had served as Nardelli's deputy at both GE Power Systems and Home Depot.

During his tenure at The Home Depot, Nardelli became involved with President Bush. He met Bush at the White House in 2002 and was appointed to Bush's Council on Service and Civic Participation (although he is no longer a member). Nardelli also hosted a garden reception/fundraiser for Bush at his Atlanta home on May 20, 2004

Nardelli was also briefly on the Board of Directors for Coca Cola starting in 2001.

See Also

• Business Week profile
• MSNBC Out at Home Depot
• Seeing red over a golden parachute
• Biography
• Reference