Home Depot's Ex-Chief to Lead Chrysler
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Monday, August 6, 2007
Robert L. Nardelli, the controversial former chief executive of Home Depot, is expected to be named to lead Chrysler as chairman and chief executive, according to people familiar with situation. The move came days after Chrysler officially changed hands from German ownership to an American private-equity group.
Chrysler's current chief executive, Tom LaSorda, is expected to be named Chrysler vice chairman and president. Eric E. Ridenour, the automaker's chief operating officer, is expected to leave the company.
The company has scheduled a morning news conference for today with Nardelli and LaSorda at Chrysler's suburban Detroit headquarters in Auburn Hills, Mich.
Nardelli, 59, abruptly resigned from Home Depot in January, pocketing a $250 million severance package when the company's stock was languishing. But Nardelli was credited with doubling Home Depot's revenue during his six-year tenure.
"He has fresh eyes and wide operational experience," an official with Cerberus Capital Management said of Nardelli late last night. Cerberus, a private-equity group, bought a 80 percent stake in Chrysler in April. "This is a guy who everywhere he has gone, has made every stakeholder better," the official said.
Sources spoke on condition of anonymity because the formal announcement had not been made.
As a private company, Cerberus won't have to detail Nardelli's pay at Chrysler. The Cerberus official said Nardelli will be paid a salary of $1 a year and the rest of his compensation will be tied to Chrysler's performance.
The management moves are likely to shake up the car business in Detroit, where outsiders are rarely are picked as company leaders. Ford broke from this custom last year by naming Alan R. Mulally, a former top executive at Boeing, as its chief executive.
Anxiety among Chrysler workers is running high. Chrysler's new owners haven't outlined plans for the automaker, which has struggled along with General Motors and Ford as foreign automakers continue to make deep inroads into the U.S. auto market.
Nardelli had been the subject of criticism at Home Depot since he took over the company in December 2000, promising to increase sales and profit and to centralize management in a chain once known for its freewheeling culture. He succeeded on many fronts, even as he fell short on others, and in recent years found himself defending his hefty compensation.
