Bob Nardelli Moves to Chrysler*

            


Details


Case Code : CLHR025
Publication date : 2009
Subject : HROB
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

Robert Nardelli, Home Depot, Chrysler, Cerberus Capital Management, severance package, turnaround, United Auto Workers, DaimlerChrysler AG, Tom LaSorda, autocratic manager

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract:
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This caselet discusses Bob Nardelli appointment as the Chairman and CEO of Chrysler (which became a part of US-based private equity firm, Cerberus Capital Management, in August 2007) for a base annual salary of $1. It talks about Nardelli's controversial severance deal with Home Depot where he had been the CEO, and some of the challenges that he faced in turning around Chrysler.

Introduction

In August 2007, Robert Nardelli (Nardelli) was appointed as the Chairman and CEO of Chrysler Holdings LLC (Chrysler) for a token annual base salary of $1 . Just a few months previously, Nardelli had been in the eye of a storm for receiving what was thought to be an unreasonably high severance package to resign as the CEO of Home Depot .

In January 2007, Nardelli had been granted a severance package worth $210 million by Home Depot's board. This was in addition to the average compensation of $25.7 million a year that he had collected since he joined the company in 2000.


Analysts thought that the compensation was excessive, considering Nardelli's unpopularity at Home Depot and the company's stagnant share price during the last few years of his tenure; however, most of them agreed that he had indeed managed to improve Home Depot's financial performance...





Cases on related topics

1. Home Depot's Strategy under Bob Nardelli
2. Home Depot's Cultural Evolution - A comparison of the Company's Culture Under ITS Founders and Bob Nardelli
3. Bob Nardelli Quits Home Depot: The Debate Over Executive Pay


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