Saturday, January 06, 2007

Steffy's Nardelli Principles

Occasionally, I agree with the Loren Steffy column. This week, he writes on the exorbitant compensation package for the outgoing CEO of Home Depot. I could not agree more. How can a guy fail so miserably and then be given $210 million to go away?

The only problem I have with Steffy is that every year (and every day for that matter) is the year of the stockholder. If you do not like a CEO or a company's practices, sell the stock or implement a proxy fight. However, the proxy votes are often controlled by insiders and until the big mutual funds step up and take a hard line against abuses, nothing will ever change. That is my opinion.

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