The Wall Street Journal reports this morning that Robert Nardelli, the deposed CEO of Home Depot who left that retailer “amid criticism over his compensation, the strategic direction of the big retailer and its stock price,” will shortly be named the new CEO of Chrysler, just recently acquired by Cerberus Capital Management.
According to the story, one auto industry official describes Nardelli to the Journal as “a real change agent … in a private environment, I'm sure his compensation won't be an issue."
According to the story, one auto industry official describes Nardelli to the Journal as “a real change agent … in a private environment, I'm sure his compensation won't be an issue."
- KC's View:
-
It is a pretty safe bet that Nardelli is going to have a big paycheck that will not be related to his performance. Of course, if he does well he’ll have a really, really big payday…but this doesn’t seem to be a guy who believes in pay-for-performance, especially when it comes to his own job.
It’s ironic – when Lee Iacocca took over Chrysler in 1978, he took the enormous salary of $1 a year. He eventually got rich, but it was after he turned the company around. While the company’s circumstances may not be quite as dire as they were in 1978, things aren’t good for Chrysler…and one has to wonder if Nardelli – someone with no experience in the auto business – is the guy to turn things around.
One suggestion to the folks at Cerberus. If the name Larry Johnston comes up in discussions with Nardelli, cut your losses. Fast.
